7054 Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices 

11 17 CFR 200.30–3(a)(12). 

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)(4)(ii). 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2015–006 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 

Number SR–NASDAQ–2015–006. 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 

offices 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–2015–006, and should be 

submitted on or before March 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–02498 Filed 2–6–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74191; File No. SR–CME– 

2015–003] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Change to 

CME Rule 814 To Clarify Certain 

Operational Details Regarding Current 

CME Settlement Cycles 

February 3, 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, Chicago Mercantile Exchange 

Inc. (‘‘CME’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I, II and III, 

below, which Items have been prepared 

primarily by CME. CME filed the 

proposal pursuant to Section 19(b)(3)(A) 

of the Act,3 and Rule 19b–4(f)(4)(ii) 4

thereunder, so that the proposal was 

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 

CME is filing a proposed rule change 

that is limited to its business as a 

derivatives clearing organization 

(‘‘DCO’’). More specifically, the 

proposed change would amend the text 

of current CME Rule 814 to clarify 

certain operational details regarding 

current CME settlement cycles. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CME included statements concerning 

the purpose 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. CME 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 

CME is registered as a derivatives 

clearing organization with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and currently 

offers clearing services for many 

different futures and swaps products. 

With this filing, CME proposes to make 

rulebook changes that are limited to its 

business clearing futures and swaps 

under the exclusive jurisdiction of the 

CFTC. More specifically, the proposed 

changes would amend the text of 

current CME Rule 814 to clarify certain 

operational details regarding current 

CME settlement cycles. 

The first proposed change to CME 

Rule 814 would add further detail 

regarding the settlement cycle for 

commodity contracts that are options. 

The current version of Rule 814 is silent 

on the settlement cycle for commodity 

contracts that are options, and so 

additional language is proposed to 

ensure that the market is aware that 

settlement of option value operates 

differently than settlement for nonoption commodity contracts. The 

proposed rule change is consistent with 

the current settlement process so no 

operational changes are needed to 

implement the proposed rules. The 

second proposed change is to amend 

Rule 814 so that it explicitly reflects the 

fact that the current CME settlement 

process results in outstanding exposures 

being settled to zero fair value during 

each settlement cycle. The third 

proposed change is to add further clarity 

regarding settlement finality at the CME 

clearing house. Lastly, certain terms in 

the Rule 814 text are being modified in 

order to provide additional clarity to the 

marketplace and regulators. As 

described above, none of these revisions 

would change any aspect of current 

operations but, rather, would merely 

clarify certain operational details of the 

clearing cycle currently in place in the 

text of Rule 814. 

The proposed rule change that is 

described in this filing is limited to 

CME’s business as a derivatives clearing 

organization clearing products under 

the exclusive jurisdiction of the CFTC. 

CME has not cleared security based 

swaps and does not plan to and 

therefore the proposed rule change does 

not impact CME’s security-based swap 

clearing business in any way. The 

proposed rule change will become 

effective immediately. CME notes that it 

has also submitted the proposed rule 

change that is the subject of this filing 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices 7055 

5 15 U.S.C. 78q–1. 

6 15 U.S.C. 78q–1(b)(3)(F). 

7See Securities Exchange Act Release No. 34– 

73615 (Nov. 17, 2014), 79 FR 69545 (Nov. 21, 2014) 

(SR–CME–2014–49). The only exception is with 

regards to Restructuring European Single Name 

CDS Contracts created following the occurrence of 

a Restructuring Credit Event in respect of an iTraxx 

Component Transaction. The clearing of 

Restructuring European Single Name CDS Contracts 

will be a necessary byproduct after such time that 

CME begins clearing iTraxx Contracts. 

8 15 U.S.C. 78q–1. 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(4)(ii). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(4)(ii). 

to its primary regulator, the CFTC, in 

CME Submission 14–585. 

CME believes the proposed rule 

change is consistent with the 

requirements of the Act including 

Section 17A of the Act.5 The proposed 

rule change would amend the text of 

current CME Rule 814 to clarify certain 

operational details regarding current 

CME settlement cycles. The additional 

clarity in CME’s rulebook regarding its 

settlement cycles should be seen to be 

designed to promote the prompt and 

accurate clearance and settlement of 

securities transactions and, to the extent 

applicable, derivatives agreements, 

contracts, and transactions, to assure the 

safeguarding of securities and funds 

which are in the custody or control of 

the clearing agency or for which it is 

responsible, and, in general, to protect 

investors and the public interest 

consistent with Section 17A(b)(3)(F) of 

the Act.6

Furthermore, the proposed change is 

limited to CME’s futures and swaps 

clearing businesses, which means it is 

limited in its effect to products that are 

under the exclusive jurisdiction of the 

CFTC. As such, the proposed change is 

limited to CME’s activities as a DCO 

clearing futures that are not security 

futures and swaps that are not securitybased swaps. CME notes that the 

policies of the CFTC with respect to 

administering the Commodity Exchange 

Act are comparable to a number of the 

policies underlying the Act, such as 

promoting market transparency for overthe-counter derivatives markets, 

promoting the prompt and accurate 

clearance of transactions and protecting 

investors and the public interest. 

Because the proposed change is 

limited in its effect to CME’s futures and 

swaps clearing businesses, the proposed 

change is properly classified as effecting 

a change in an existing service of CME 

that: 

(a) Primarily affects the clearing 

operations of CME with respect to 

products that are not securities, 

including futures that are not security 

futures, swaps that are not securitybased swaps or mixed swaps; and 

forwards that are not security forwards; 

and 

(b) does not significantly affect any 

securities clearing operations of CME or 

any rights or obligations of CME with 

respect to securities clearing or persons 

using such securities-clearing service. 

CME believes that the proposal does not 

significantly affect any securities 

clearing operations of CME because 

CME recently filed a proposed rule 

change that clarified that CME has 

decided not to clear security-based 

swaps, except in a very limited set of 

circumstances.7 The rule filing 

reflecting CME’s decision not to clear 

security-based swaps removed any 

ambiguity concerning CME’s ability or 

intent to perform the functions of a 

clearing agency with respect to securitybased swaps. Therefore, this proposal 

will not have an effect on any securities 

clearing operations of CME. As such, the 

changes are therefore consistent with 

the requirements of Section 17A of the 

Act 8 and are properly filed under 

Section 19(b)(3)(A) 9 and Rule 19b– 

4(f)(4)(ii) 10 thereunder. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CME does not believe that the 

proposed rule change will have any 

impact, or impose any burden, on 

competition. CME is making the 

aforementioned changes simply to 

clarify current settlement processes; 

there are no operational changes. 

Further, the changes are limited to 

CME’s futures and swaps clearing 

businesses and, as such, do not affect 

the security-based swap clearing 

activities of CME in any way and 

therefore do not impose any burden on 

competition that is inappropriate 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 

CME has not solicited, and does not 

intend to solicit, comments regarding 

this proposed rule change. CME has not 

received any unsolicited written 

comments from interested parties. 

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) 11 of the Act and paragraph 

(f)(4)(ii) of Rule 19b–4 12 thereunder. 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. 

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 email to rule-comments@

sec.gov. Please include File No. SR– 

CME–2015–003 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC, 21049–1090. 

All submissions should refer to File 

Number SR–CME–2015–003. 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 or 

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 CME and on CME’s Web site at 

http://www.cmegroup.com/marketregulation/rule-filings.html. 

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. 

mstockstill on DSK4VPTVN1PROD with NOTICES

7056 Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices 

13 17 CFR 200.30–3(a)(12). 

1 12 U.S.C. 5465(e)(1). 

2 17 CFR 240.19b–4(n)(1)(i). 

3 In Items I and II below, OCC states that the 

purpose of this proposal is in part to facilitate 

compliance with the SEC Proposed Rules (as 

defined below) and address Principle 15 of the 

Principles for Financial Market Infrastructures 

(‘‘PMFIs’’). The Commission notes that the SEC 

Proposed Rules are pending. The Commission will 

evaluate the advance notice under the Clearing 

Supervision Act and the rules currently in force 

thereunder. 

4According to OCC, Amendment No. 1 to the SR– 

OCC–2014–813 (‘‘Filing’’): (i) Updates OCC’s plan 

for raising additional capital (‘‘Capital Plan’’) in 

connection with negotiations between OCC and the 

options exchanges that own equity in OCC 

(‘‘Stockholder Exchanges’’ or ‘‘stockholders’’) and 

that would contribute additional capital under the 

Capital Plan, (ii) corrects typographical errors in the 

Filing, and (iii) updates the Term Sheet included as 

an exhibit to the Filing, which summarizes material 

features of the Capital Plan. 

5The material features of the Capital Plan are 

summarized in the Term Sheet that is included as 

Exhibit 3. Certain details of the Term Sheet may 

change as a result of further negotiations or changes 

in financial figures, but OCC does not anticipate 

any material changes to the Capital Plan. OCC 

intends to separately file a proposed rule change 

seeking approval of changes to its By-Laws, 

Certificate of Incorporation and relevant 

agreements, including its Stockholders Agreement, 

necessary to implement the Capital Plan. 

6See Securities Exchange Act Release No. 71699 

(March 12, 2014), 79 FR 29507 (May 22, 2014) 

(‘‘SEC Proposed Rules’’). 

All submissions should refer to File 

Number SR–CME–2015–003 and should 

be submitted on or before March 2, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Jill Peterson, 

Assistant Secretary. 

[FR Doc. 2015–02499 Filed 2–6–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74202; File No. SR–OCC– 

2014–813] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of an Advance Notice, as 

Modified by Amendment No. 1, 

Concerning a Proposed Capital Plan 

for Raising Additional Capital That 

Would Support The Options Clearing 

Corporation’s Function as a 

Systemically Important Financial 

Market Utility 

February 4, 2015. 

Pursuant to Section 806(e)(1) of Title 

VIII of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

entitled the Payment, Clearing, and 

Settlement Supervision Act of 2010 

(‘‘Payment, Clearing and Settlement 

Supervision Act’’ or ‘‘Clearing 

Supervision Act’’) 1 and Rule 19b– 

4(n)(1)(i) 2 under the Securities 

Exchange Act of 1934 (‘‘Act’’) notice is 

hereby given that on December 29, 2014, 

The Options Clearing Corporation 

(‘‘OCC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the advance notice as described in Items 

I and II below, which Items have been 

prepared by OCC.3 On January 14, 2015, 

OCC filed Amendment No. 1 to the 

advance notice.4 The Commission is 

publishing this notice to solicit 

comments on the advance notice from 

interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Advance 

Notice 

This advance notice is filed by OCC 

in order to set forth a proposed Capital 

Plan for raising additional capital that 

would support OCC’s function as a 

systemically important financial market 

utility and facilitate OCC’s compliance 

with new regulatory requirements 

applicable to systemically important 

financial market utilities that have been 

proposed by the Commission but have 

not yet been adopted. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Advance Notice 

In its filing with the Commission, 

OCC included statements concerning 

the purpose of and basis for the advance 

notice and discussed any comments it 

received on the advance notice. The text 

of these statements may be examined at 

the places specified in Item IV below. 

OCC has prepared summaries, set forth 

in sections (A) and (B) below, of the 

most significant aspects of these 

statements. 

(A) Clearing Agency’s Statement on 

Comments on the Advance Notice 

Received From Members, Participants or 

Others 

Written comments on the advance 

notice were not and are not intended to 

be solicited with respect to the advance 

notice and none have been received. 

(B) Advance Notices Filed Pursuant to 

Section 806(e) of the Payment, Clearing 

and Settlement Supervision Act 

The proposed change sets forth the 

Capital Plan under which the 

Stockholder Exchanges would make an 

additional capital contribution and 

commit to replenishment capital 

(‘‘Replenishment Capital’’) in 

circumstances discussed below, and 

would receive, among other things, the 

right to receive dividends from OCC. In 

addition to the additional capital 

contribution and Replenishment 

Capital, the main features of the Capital 

Plan are: (i) A policy establishing OCC’s 

fees at a level that would be sufficient 

to cover OCC’s estimated operating 

expenses plus a ‘‘Business Risk Buffer’’ 

as described below (‘‘Fee Policy’’), (ii) 

the Refund Policy [sic], and (iii) a policy 

for calculating the amount of dividends 

to be paid to the options exchanges 

owning equity in OCC (‘‘Dividend 

Policy’’). The Capital Plan is proposed 

to be implemented on or about February 

27, 2015, subject to all necessary 

regulatory approvals.5

Purpose of the Proposed Change 

The purpose of this proposed change 

is to implement the Capital Plan, which 

would significantly increase OCC’s 

capital in connection with its increased 

responsibilities as a systemically 

important financial market utility, and 

which OCC believes would facilitate 

OCC’s compliance with new regulatory 

requirements applicable to such 

systemically important financial market 

utilities that have been proposed by the 

Commission but have not yet been 

adopted.6 For purposes of this filing, 

OCC has used the working assumption 

that the new requirements contained in 

the Commission’s proposed 

amendments to Rule 17Ad–22 of the 

SEC Proposed Rules will be adopted 

substantially as proposed. The proposed 

change is intended to ensure OCC’s 

ability to comply with Rule 17Ad–22, 

specifically paragraph (e)(15) thereof, 

when the SEC Proposed Rules become 

effective. In addition, it is intended to 

address Principle 15 of the Principles 

for Financial Market Infrastructures 

published by the Bank for International 

Settlements and the International 

Organization of Securities Commissions, 

which provides, among other things, 

that a financial market utility should 

identify, monitor and manage its general 

business risk and hold sufficient liquid 

net assets funded by equity to cover 

potential general business losses so that 

it can continue to operate as a going 

concern. The proposal includes an 

infusion of substantial additional equity 

capital by the Stockholder Exchanges to 

be made prior to February 27, 2015, 

subject to regulatory approval, that 

when added to retained earnings 

accumulated by OCC in 2014 will 

significantly increase OCC’s capital 

levels as compared to historical levels. 

Additionally, the proposed change 

includes the Replenishment Capital 

commitment, which would provide 

OCC access to additional equity 

mstockstill on DSK4VPTVN1PROD with NOTICES