7048 Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices 

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

2 17 CFR 240.19b–4. 

3A ‘‘Participant’’ or ‘‘Options Participant’’ is a 

firm or organization that is registered with the 

Exchange pursuant to Chapter II of the BX Rules for 

purposes of participating in options trading on BX 

Options as a ‘‘BX Options Order Entry Firm’’ or 

‘‘BX Options Market Maker’’. The term ‘‘BX Options 

Market Maker’’ or ‘‘Options Market Maker’’ means 

an Options Participant registered with the Exchange 

for the purpose of making markets in options 

contracts traded on the Exchange and that is vested 

with the rights and responsibilities specified in 

Chapter VII of the BX Rules. The terms ‘‘BX Options 

Order Entry Firm’’ or ‘‘Order Entry Firm’’ or ‘‘OEF’’ 

mean those Options Participants representing as 

agent Customer Orders on BX Options and those 

non-Market Maker Participants conducting 

proprietary trading. A ‘‘Clearing Participant’’ means 

a Participant that is self-clearing or a Participant 

that clears BX Options Transactions for other 

Participants of BX Options. The term ‘‘Trading 

System’’ or ‘‘System’’ means the automated trading 

system used by BX Options for the trading of 

options contracts. See Chapter I, Section 1, 

Definitions, of the BX Rules. 

purchases of securities by the Fund in 

an Affiliated Underwriting, once an 

investment by a Fund of Funds in the 

securities of the Fund exceeds the limit 

of section 12(d)(1)(A)(i) of the Act, 

including any purchases made directly 

from an Underwriting Affiliate. The 

Board will review these purchases 

periodically, but no less frequently than 

annually, to determine whether the 

purchases were influenced by the 

investment by the Fund of Funds in the 

Fund. The Board will consider, among 

other things: (i) Whether the purchases 

were consistent with the investment 

objectives and policies of the Fund; (ii) 

how the performance of securities 

purchased in an Affiliated Underwriting 

compares to the performance of 

comparable securities purchased during 

a comparable period of time in 

underwritings other than Affiliated 

Underwritings or to a benchmark such 

as a comparable market index; and (iii) 

whether the amount of securities 

purchased by the Fund in Affiliated 

Underwritings and the amount 

purchased directly from an 

Underwriting Affiliate have changed 

significantly from prior years. The 

Board will take any appropriate actions 

based on its review, including, if 

appropriate, the institution of 

procedures designed to ensure that 

purchases of securities in Affiliated 

Underwritings are in the best interest of 

shareholders of the Fund. 

8. Each Fund will maintain and 

preserve permanently in an easily 

accessible place a written copy of the 

procedures described in the preceding 

condition, and any modifications to 

such procedures, and will maintain and 

preserve for a period of not less than six 

years from the end of the fiscal year in 

which any purchase in an Affiliated 

Underwriting occurred, the first two 

years in an easily accessible place, a 

written record of each purchase of 

securities in Affiliated Underwritings 

once an investment by a Fund of Funds 

in the securities of the Fund exceeds the 

limit of section 12(d)(1)(A)(i) of the Act, 

setting forth from whom the securities 

were acquired, the identity of the 

underwriting syndicate’s members, the 

terms of the purchase, and the 

information or materials upon which 

the Board’s determinations were made. 

9. Before investing in a Fund in 

excess of the limit in section 

12(d)(1)(A), a Fund of Funds and the 

applicable Trust will execute a FOF 

Participation Agreement stating, 

without limitation, that their respective 

boards of directors or trustees and their 

investment advisers, or trustee and 

Sponsor, as applicable, understand the 

terms and conditions of the order, and 

agree to fulfill their responsibilities 

under the order. At the time of its 

investment in Shares of a Fund in 

excess of the limit in section 

12(d)(1)(A)(i), a Fund of Funds will 

notify the Fund of the investment. At 

such time, the Fund of Funds will also 

transmit to the Fund a list of the names 

of each Fund of Funds Affiliate and 

Underwriting Affiliate. The Fund of 

Funds will notify the Fund of any 

changes to the list of the names as soon 

as reasonably practicable after a change 

occurs. The Fund and the Fund of 

Funds will maintain and preserve a 

copy of the order, the FOF Participation 

Agreement, and the list with any 

updated information for the duration of 

the investment and for a period of not 

less than six years thereafter, the first 

two years in an easily accessible place. 

10. Before approving any advisory 

contract under section 15 of the Act, the 

board of directors or trustees of each 

Investing Management Company 

including a majority of the disinterested 

directors or trustees, will find that the 

advisory fees charged under such 

contract are based on services provided 

that will be in addition to, rather than 

duplicative of, the services provided 

under the advisory contract(s) of any 

Fund in which the Investing 

Management Company may invest. 

These findings and their basis will be 

fully recorded in the minute books of 

the appropriate Investing Management 

Company. 

11. Any sales charges and/or service 

fees charged with respect to shares of a 

Fund of Funds will not exceed the 

limits applicable to a fund of funds as 

set forth in NASD Conduct Rule 2830. 

12. No Fund will acquire securities of 

an investment company or company 

relying on section 3(c)(1) or 3(c)(7) of 

the Act in excess of the limits contained 

in section 12(d)(1)(A) of the Act, except 

to the extent the Fund acquires 

securities of another investment 

company pursuant to exemptive relief 

from the Commission permitting the 

Fund to acquire securities of one or 

more investment companies for shortterm cash management purposes. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–02488 Filed 2–6–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74195; File No. SR–BX– 

2015–007] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Add New 

Section 20, Exchange Sharing of 

Participant-Designated Risk Settings, 

to Chapter VI, Trading Systems 

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 

28, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ 

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 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to add new 

Section 20, Exchange Sharing of 

Participant-Designated Risk Settings, to 

Chapter VI, Trading Systems, of the 

Exchange’s Options rules to authorize 

the Exchange to share any Participantdesignated risk settings in the 

Exchange’s Trading System with the 

Clearing Participant that clears 

transactions on behalf of the 

Participant.3

The text of the proposed rule change 

is below; proposed new language is 

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Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices 7049 

4The term ‘‘BX Options’’ means the BX Options 

Market, an options trading facility of the Exchange 

under Section 3(a)(2) of the Exchange Act. The term 

‘‘BX Options Transaction’’ means a transaction 

involving an options contract that is effected on or 

through BX Options or its facilities or systems. 

5See Chapter VI, BX Trading Systems, Section 15, 

Submission for Clearance, Subsection (a). 

6See Chapter VII, Section 8, Letters of Guarantee. 

7See Securities Exchange Act Release No. 67256 

(June 26, 2012), 77 FR 39277 (July 2, 2012) (SR–BX– 

2012–030). The Mechanism provides protection to 

participants from the risk of multiple executions 

across multiple series of an option. Quoting across 

many series in an option creates the possibility of 

‘‘rapid fire’’ executions that can create large, 

unintended principal positions that expose market 

makers, who are required to continuously quote in 

assigned options, to potentially significant market 

risk. Participants may establish a specified time 

period, not to exceed 15 seconds, within which a 

counting program will count the number of 

contracts traded in an option by such Participant. 

When the Participant has traded a certain number 

of contracts during the specified time period, the 

Risk Monitor Mechanism will automatically remove 

such Participant’s quotations from the Exchange’s 

disseminated quotation in all series of the particular 

option. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

italicized; proposed deletions are in 

brackets. 

* * * * * 

NASDAQ OMX BX Rules 

Options Rules 

* * * * * 

Chapter VI, Trading Systems 

Sec. 1–19. No change. 

Sec. 20 Exchange Sharing of 

Participant-Designated Risk Settings. 

The Exchange may share any 

Participant-designated risk settings in 

the Trading System with the Clearing 

Participant that clears transactions on 

behalf of the Participant. 

* * * * * 

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 Exchange is proposing to adopt 

new Section 20, Exchange Sharing of 

Participant-Designated Risk Settings, in 

Chapter VI, Trading Systems, of the BX 

Rules in order to authorize the Exchange 

to share any Participant-designated risk 

settings in Exchange’s Trading System 

with the Clearing Participant that clears 

transactions on behalf of the Participant. 

Pursuant to Chapter II, Participation, 

Section 2, Requirements for Options 

Participation, of the BX Rules, Options 

Participants must be Options Clearing 

Participants or establish a clearing 

arrangement with a Clearing Participant. 

Every Clearing Participant is responsible 

for the clearance of BX Options 

Transactions 4 of each Options 

Participant that gives up such Clearing 

Participant’s name pursuant to a letter 

of authorization, letter of guarantee or 

other authorization (‘‘Letter of 

Guarantee’’) given by such Clearing 

Participant to such Options Participant, 

which authorization must be submitted 

to BX.5 Further, no Options Participant 

may make any transactions on BX 

Options unless a Letter of Guarantee 

providing that the issuing Clearing 

Participant accepts financial 

responsibilities for all BX Options 

Transactions made by the guaranteed 

Participant has been issued for such 

Participant by a Clearing Participant and 

filed with BX Regulation.6

Thus, while not all Participants are 

Clearing Participants, all Participants 

require a Clearing Participant’s consent 

to clear transactions on their behalf in 

order to conduct business on the 

Exchange. Each Participant that 

transacts through a Clearing Participant 

on the Exchange executes a Letter of 

Guarantee which codifies the 

relationship between the Participant 

and the Clearing Participant and 

provides the Exchange with notice of 

which Clearing Participants have 

relationships with which Participants. 

The Clearing Member that guarantees 

the Participants transactions on the 

Exchange has a financial interest in 

understanding the risk tolerance of the 

Participant. The proposal would 

provide the Exchange with authority to 

directly provide Clearing Participants 

with information that may otherwise be 

available to such Clearing Participants 

by virtue of their relationship with the 

respective Participants. 

At this time, the risk settings covered 

by this proposal are set forth in Chapter 

VI, Trading Systems, Section 19, Risk 

Monitor Mechanism.7 The Exchange 

may adopt additional rules providing 

for Participant-designated risk settings 

other than those provided in Chapter VI, 

Section 19 that could be shared with a 

Participant’s Clearing Participant under 

the proposal, and the Exchange would 

announce these additional risk settings 

by issuing an Options Trader Alert. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder that 

are applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6(b) of the Act.8

In particular, the proposal is consistent 

with Section 6(b)(5) of the Act,9 because 

it is designed to promote just and 

equitable principles of trade, remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. 

The proposed rule change will allow 

the Exchange to directly provide a 

Participant’s designated risk settings to 

the Clearing Participant that clears 

trades on behalf of the Participant. 

Because a Clearing Participant that 

executes a clearing Letter of Guarantee 

on behalf of a Participant guarantees all 

transactions of that Participant, and 

therefore bears the risk associated with 

those transactions, it is appropriate for 

the Clearing Participant to have 

knowledge of what risk settings the 

Participant may utilize within the 

Exchange’s trading system. The 

proposal will permit Clearing 

Participants who have a financial 

interest in the risk settings of 

Participants with whom the Clearing 

Participant has entered into a clearing 

Letter of Guarantee to better monitor 

and manage the potential risks assumed 

by Clearing Participants, thereby 

providing Clearing Participants with 

greater control and flexibility over 

setting their own risk tolerance and 

exposure and aiding Clearing 

Participants in complying with the Act. 

To the extent a Clearing Participant 

might reasonably require a Participant 

to provide access to its risk setting as a 

prerequisite to continuing to clear trades 

on the Participant’s behalf, the 

Exchange’s proposal to share those risk 

settings directly reduces the 

administrative burden on Participants 

and ensures that Clearing Participants 

are receiving information that is up to 

date and conforms to the settings active 

in the Exchange’s trading system. 

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 that is not 

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7050 Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices 

10 15 U.S.C. 78s(b)(3)(a)(ii). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73512 

(Nov. 3, 2014), 79 FR 66442 (‘‘Notice’’). 

4All comments on the proposed rule change, 

including Amendment No. 1, are available on the 

Commission’s Web site at: http://www.sec.gov/

comments/sr-nysearca-2014-107/

nysearca2014107.shtml. 

5See Securities Exchange Act Release No. 73810, 

79 FR 74783 (Dec. 16, 2014). The Commission 

determined that it was appropriate to designate a 

longer period within which to take action on the 

proposed rule change so that it has sufficient time 

to consider the proposed rule change. Accordingly, 

the Commission designated February 5, 2015 as the 

date by which it should approve, disapprove, or 

institute proceedings to determine whether to 

disapprove the proposed rule change. 

6 15 U.S.C. 78s(b)(2)(B). 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not designed to 

address any competitive issues and does 

not pose an undue burden on nonClearing Participants because, unlike 

Clearing Participants, non-Clearing 

Participants do not guarantee the 

execution of a Participant’s transactions 

on the Exchange. The proposal is 

structured to offer the same 

enhancement to all Clearing 

Participants, regardless of size, and 

would not impose a competitive burden 

on any Participant. Any Participant that 

does not wish to share its designated 

risk settings with its Clearing 

Participant could avoid sharing such 

settings by becoming a Clearing 

Participant. 

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 

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)(ii) [sic] of the Act 10 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.11

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BX–2015–007 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–BX–2015–007. 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–BX– 

2015–007, and should be submitted on 

or before March 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–02502 Filed 2–6–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74199; File No. SR– 

NYSEArca–2014–107] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Instituting 

Proceedings To Determine Whether To 

Approve or Disapprove Proposed Rule 

Change, as Modified by Amendment 

No. 1 Thereto, To Reflect Changes to 

the Means of Achieving the Investment 

Objective Applicable to the 

Guggenheim Enhanced Short Duration 

ETF 

February 3, 2015. 

On October 21, 2014, NYSE Arca, Inc. 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

reflect certain changes to the description 

of the Guggenheim Enhanced Short 

Duration ETF (‘‘Fund’’), a series of 

Claymore Exchange-Traded Fund Trust 

(‘‘Trust’’). On October 29, 2014, the 

Exchange filed Amendment No. 1 to the 

proposed rule change. The proposed 

rule change was published for comment 

in the Federal Register on November 7, 

2014.3 The Commission received one 

comment on the proposal.4 On 

December 10, 2014, the Commission 

designated a longer period within which 

to approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether to disapprove the proposed 

rule change.5 This Order institutes 

proceedings under Section 19(b)(2)(B) of 

the Act 6 to determine whether to 

approve or disapprove the proposed 

rule change, as modified by Amendment 

No. 1 thereto. 

I. Description of the Proposal 

The Exchange proposes to reflect a 

change, as described below, to the 

mstockstill on DSK4VPTVN1PROD with NOTICES