12652 Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 

7See, e.g., NASDAQ OMX PHLX LLC fee 

schedule, available at, http://

www.nasdaqtrader.com/Micro.aspx?id=phlxpricing 

(capping at $700 transaction fees for all reversals, 

conversions, box spreads, and jelly roll strategies 

executed on the same trading day in the same 

option class); Chicago Board Options Exchange, Inc. 

fee schedule, available at, http://www.cboe.com/

publish/feeschedule/CBOEFeeSchedule.pdf 

(capping at $700 transaction fees for all reversals, 

conversions, and jelly roll strategies executed on 

the same trading day in the same option class). 

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

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

10 17 CFR 240.19b–4(f)(2). 11 15 U.S.C. 78s(b)(2)(B). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

using its facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The Exchange believes that the 

proposed change is reasonable, 

equitable and not unfairly 

discriminatory because the reduced fee 

cap is designed to attract more volume 

and liquidity to the Exchange, which 

would benefit all Exchange participants 

through increased opportunities to trade 

as well as enhancing price discovery. 

Further, because the proposed change 

applies equally to all non-Customers 

who may participate in Strategy 

Executions, the Exchange believes the 

reduced Strategy Cap is reasonable, 

equitable and not unfairly 

discriminatory. The Exchange notes that 

Customers are not charged transaction 

fees when participating in Strategy 

Executions and therefore are not subject 

to the Strategy Cap. 

Finally, the Exchange notes that the 

proposed $700 Strategy Cap is 

equivalent to the cap placed on various 

executions strategies by other 

exchanges.7

For these reasons, the Exchange 

believes that the proposal is consistent 

with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,8 the Exchange does not believe 

that the proposed rule change will 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed changes apply 

uniformly to all Exchange members that 

incur transaction charges. To the 

contrary, the proposed change would 

continue to encourage members to 

transact strategies on the Exchange 

because the proposed fee caps are 

competitive with fee caps at other 

options exchanges. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily favor 

competing venues. In such an 

environment, the Exchange must 

continually review, and consider 

adjusting, its fees and credits to remain 

competitive with other exchanges. For 

the reasons described above, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 9 of the Act and 

subparagraph (f)(2) of Rule 19b–4 10

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 11 of the Act to 

determine whether the proposed rule 

change 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– 

NYSEARCA–2015–09 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–2015–09. 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 the 

filing will also be available for 

inspection and copying at the NYSE’s 

principal office and on its Internet Web 

site at www.nyse.com. 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–2015–09, and should be 

submitted on or before March 31, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–05483 Filed 3–9–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74432; File No. SR–OCC– 

2015–03] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change 

Concerning the Execution of an 

Agreement for Clearing and Settlement 

Services Between OCC and NASDAQ 

Futures, Inc. 

March 4, 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 February 

20, 2015, The Options Clearing 

Corporation (‘‘OCC’’) filed with the 

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Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 12653 

3See http://www.cftc.gov/ucm/groups/public/@

otherif/documents/ifdocs/ 

nasdaqorderofreinstatement.pdf. 

4See Securities Exchange Act Release No. 66340 

(February 7, 2012), 77 FR 7621 (February 13, 2012) 

(SR–OCC–2012–02). 

5See 17 CFR 40.1. 

6More specifically, the Previous Agreement, in 

relevant part, stated that it would terminate if NFX 

terminates trading of all Cleared Contracts. See 

Section 19(b) of the Previous Agreement. See also 

note 4 supra. 

7See note 3 supra. 

8See Sections 3(a) and 9 of the Clearing 

Agreement in which language has been added 

allowing such flexibility. 

9See Article I, Section 1(C)(28) of OCC’s By-Laws. 

See also Sections 3(g), 6(a), 7, 19, and Schedule A, 

Section 1 of the Clearing Agreement. 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by OCC. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

OCC is proposing to execute an 

Agreement for Clearing and Settlement 

Services (‘‘Clearing Agreement’’) 

between OCC and NASDAQ Futures, 

Inc. (‘‘NFX’’) in connection with NFX’s 

intention to resume operating as a 

designated contract market (‘‘DCM’’) 

regulated by the Commodity Futures 

Trading Commission (‘‘CFTC’’). 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

OCC is proposing to provide clearance 

and settlement services to NFX pursuant 

to the terms set forth in the Clearing 

Agreement. NFX has been re-designated 

by the CFTC as a DCM.3 The purpose of 

this proposed rule change is to provide 

notice regarding the Clearing Agreement 

so that OCC may begin providing 

clearing and settlement services for NFX 

in the second quarter of 2015. 

Background 

By way of background, NFX 

previously operated as a DCM and 

cleared its futures contracts through 

OCC. As such, OCC and NFX had 

previously entered into a Second 

Amended and Restated Agreement for 

Clearing and Settlement Services 

(‘‘Previous Agreement’’) dated January 

13, 2012.4 Subsequently, as of January 

31, 2014, NFX ceased operations as a 

contract market and became a dormant 

contract market under CFTC 

Regulations.5 As a result, the Previous 

Agreement was terminated pursuant to 

its terms6 and the clearing relationship 

between OCC and NFX terminated. 

Clearing Agreement Proposal 

On November 21, 2014, NFX was 

approved by the CFTC as a DCM.7 In 

connection with that approval, OCC is 

now proposing to provide the clearance 

and settlement services as described in 

the Clearing Agreement. The Clearing 

Agreement is substantially similar to the 

Previous Agreement with several 

differences discussed in more detail 

below. 

The Clearing Agreement has been 

amended to allow OCC more flexibility 

in determining which products it will 

clear based upon OCC’s conclusion that 

it is able to appropriately risk manage 

such products using commercially 

reasonable standards.8 More 

specifically, the following changes have 

been made: 

• Section 3(a) of the Clearing 

Agreement, ‘‘General Criteria for 

Underlying Interests,’’ has been 

amended to permit NFX to select the 

underlying interests that are the subject 

of currency futures, commodity futures, 

and/or futures options to be traded on 

NFX only if OCC is satisfied that it is 

able to appropriately risk manage the 

contract with the proposed underlying 

interest using commercially reasonable 

efforts. 

• Section 9 of the Clearing 

Agreement, ‘‘Limitations of Authority 

and Responsibility,’’ has been amended 

to specify that OCC shall have no 

responsibility to enforce standards 

relating to the conduct of trading on 

NFX unless OCC finds it reasonably 

necessary in order to appropriately risk 

manage the products that are being 

traded on NFX. 

In addition to the above, the Clearing 

Agreement will also make several 

changes to the Previous Agreement, 

which include: 

• Section 3(c), ‘‘Procedures for 

Selection of Underlying Interests,’’ has 

been amended to state that NFX must 

submit a certificate for a new class of 

contracts not already listed or traded on 

NFX as soon as practicable (rather than 

ten days prior to the commencement of 

trading). It has also been amended to 

state that OCC will be obligated to use 

commercially reasonable efforts to 

authorize the clearance and settlement 

of such contracts as soon as practicable. 

In addition, the Clearing Agreement 

expressly obligates NFX to provide OCC 

with any additional information as 

requested by OCC from time to time that 

will assist OCC in identifying a new 

product proposed for clearing by NFX. 

OCC believes that these amendments to 

Section 3(c), related to the procedures 

for the selection of underlying interests, 

will ensure that OCC not only has the 

correct information needed to evaluate a 

proposed new product but that the 

information will be produced to OCC in 

a timely manner which will provide 

OCC sufficient time to evaluate the 

proposed new product. 

• Section 3(d), ‘‘Notice of Additional 

Maturity or Expiration Dates,’’ has been 

amended to state that, for a class of 

products previously certified, NFX may 

introduce a new maturity or expiration 

date that is in the cycle set forth in the 

certificate by providing notice to OCC 

through electronic means specified by 

OCC. The Previous Agreement required 

such notice to be sent to OCC only by 

email or facsimile. 

• A universal conforming change has 

been made to various sections in the 

Clearing Agreement to replace the term 

‘‘matched’’ trades with ‘‘confirmed’’ 

trades to better describe trades that are 

processed for clearance and settlement.9

• Section 5(a), ‘‘Confirmed Trade 

Reports,’’ has been amended to remove 

language discussing the possibility that 

NFX will provide OCC with a confirmed 

trade report on a real time basis as this 

capability is already captured in the 

language ‘‘as the Corporation may 

reasonably prescribe.’’ 

• Section 5(c)(i) has been amended to 

include language that will allow OCC to 

determine the final settlement price for 

a futures contract in which the 

underlying interest is a cash-settled 

foreign currency if the organized market 

in which that foreign currency future is 

traded on, or the foreign currency itself, 

did not open or remain open for trading 

at or before the time in which the 

settlement price for such futures 

contract would ordinarily be 

determined. In addition, Section 5(c)(i) 

has been amended to include a 

reference to ‘‘variance’’ when listing 

factors that will allow OCC to determine 

a final reasonable settlement price, if 

not reported at the ordinary time of final 

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12654 Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 

10 15 U.S.C. 78q–1(b)(3)(F). 

settlement. OCC believes that these 

additions to the Clearing Agreement 

clarify the potential underlying interests 

in which NFX may introduce futures 

contracts and make the Clearing 

Agreement more precise. 

• Section 7, ‘‘Acceptance and 

Rejection of Transactions in Cleared 

Contracts,’’ has been amended to 

include a provision that will allow OCC, 

in accordance with its By-Laws, to reject 

transactions due to validation errors 

which will allow OCC to better manage 

its clearance and settlement obligations 

by expressly allowing it to reject 

transactions that do not contain 

complete terms. These validation errors 

include, for example, an incorrect 

Clearing Member, account, product or 

format. 

• Section 8, ‘‘Non-Discrimination,’’ 

has been amended to delete a provision 

restricting OCC from changing its ByLaws or Rules in any manner that may 

limit its obligations to clear and settle 

for NFX. In addition, a provision has 

been deleted requiring OCC to amend 

the Clearing Agreement in the event that 

OCC has made changes to its standard 

form agreement for clearing and 

settlement services. Section 8 has also 

been amended to delete a provision 

stating OCC is required to consult with 

NFX and modify OCC’s By-Laws or 

Rules to incorporate product design 

features specified by NFX for new 

products. OCC believes that these 

provisions are no longer necessary as 

they limit OCC’s ability to modify its 

By-Laws, Rules and agreements which 

may be necessary for OCC to fulfill its 

obligations as a clearing organization. 

OCC will, however, continue to be 

obligated to fulfill both the provisions of 

the Clearing Agreement and OCC’s 

regulatory responsibilities. Section 8 has 

additionally been amended to delete an 

obligation for each party to provide the 

other with proposed rule changes. The 

elimination of this contractual 

obligation reflects the parties’ 

determination that their respective 

obligations to post filed regulatory 

submissions on their public Web sites 

provides sufficient notice of such 

changes. 

• Section 11, ‘‘Financial 

Requirements for Clearing Members,’’ 

has been amended to delete a provision 

stating the specific financial 

responsibility standards OCC has with 

respect to its Clearing Members. This 

change was made to further streamline 

the Clearing Agreement given OCC’s 

general obligation to remain consistent 

with OCC By-Laws and Rules. 

• Section 14, ‘‘Programs and 

Projects,’’ has been amended to 

eliminate a provision expressly 

requiring OCC to offer futures contract 

clearing terms to NFX that are no less 

favorable to the terms offered to other 

exchanges. 

• Sections 15 and 24 in the Previous 

Agreement, ‘‘Information Sharing’’ and 

‘‘Quality Standards’’ respectively, have 

been deleted in their entirety in an 

attempt to simplify the Clearing 

Agreement as the sections create 

unnecessary obligations on the parties 

and are duplicative of general regulatory 

responsibilities of both parties. 

• Section 18(b), ‘‘Other Grounds for 

Termination,’’ has been amended to 

include a provision that OCC may 

terminate the Clearing Agreement at any 

time so long as NFX is given 120 days 

prior written notice. The addition of this 

provision better balances the rights of 

both parties to terminate the Clearing 

Agreement at their discretion provided 

that proper notice is given as required 

by the Clearing Agreement. 

• Various administrative changes 

have been made throughout the 

document including, but not limited to, 

an amended legal name and description 

of NFX, updated references to sections 

within the document, and clean-up 

changes of duplicative terms. 

Finally, Schedule A of the Clearing 

Agreement, ‘‘Description of Clearing 

and Settlement Services’’ and Schedule 

B of the Clearing Agreement, 

‘‘Information Sharing,’’ have been 

amended making several changes to the 

Previous Agreement, which include: 

• Section (1) of Schedule A of the 

Clearing Agreement, ‘‘Trade 

Acceptance,’’ has been updated to 

reflect current OCC operational 

requirements with respect to submission 

of confirmed trades. 

• Section (4) of Schedule A, 

‘‘Information for Clearing Members,’’ 

has been amended to delete specific 

information sharing obligations of OCC 

to its Clearing Members and to state that 

the information provided to Clearing 

Members will be in accordance with 

OCC’s By-Laws and Rules. 

• Section (I)(A) of Schedule B has 

been amended to delete specific 

references to information that OCC will 

provide to Clearing Members on a daily 

basis and instead adds a provision that 

OCC will provide NFX with its ‘‘Data 

Distribution Service’’ information for 

regulatory and financial purposes. 

• Section (I)(B) of Schedule B has 

been amended to delete certain 

information sharing provisions and to 

state that the information sharing 

obligations OCC continues to have may 

be satisfied by posting the required 

information on OCC’s public Web site 

which streamlines the information 

sharing process. 

Conclusion 

The Clearing Agreement has remained 

substantially similar to the Previous 

Agreement but has been amended in 

certain respects as described above. 

Generally, the amendments will provide 

OCC more discretion in which products 

it manages based upon its risk 

management framework, remove 

unnecessary obligations for each party, 

and make the Clearing Agreement more 

precise and reflective of current 

practices. The Clearing Agreement also 

allows OCC to continue to provide 

clearance and settlement purposes 

while fulfilling its obligations as a selfregulating organization. As such, as 

stated above, OCC is proposing to 

provide notice regarding the Clearing 

Agreement so that OCC may begin 

providing clearing and settlement 

services for NFX in the second quarter 

of 2015. 

2. Statutory Basis 

OCC believes that the proposed rule 

change is consistent with Section 

17A(b)(3)(F) of the Securities Exchange 

Act of 1934, as amended (‘‘Act’’).10 By 

entering into the Clearing Agreement, 

OCC will help ensure that derivatives 

contracts traded on NFX will be 

promptly and accurately cleared 

pursuant to OCC’s prudent risk 

management framework. By bringing 

derivatives contracts traded on NFX 

within the scope of OCC’s clearance and 

settlement processes, OCC believes the 

proposed rule change contributes to the 

protection of investors and the public 

interest. By ensuring that the derivatives 

contracts traded on NFX are prudently 

risk managed under OCC’s risk 

management framework, the proposed 

rule change also helps ensure the 

safeguarding of securities and funds in 

the custody and control of OCC. Finally, 

the proposed rule change is not 

inconsistent with the existing rules of 

OCC, including any other rules 

proposed to be amended. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

OCC does not believe that the 

proposed rule change would impose a 

burden on competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments on the proposed 

rule change were not and are not 

intended to be solicited with respect to 

the proposed rule change and none have 

been received. 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 12655 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 1 replaces SR–EDGA–2015–10 

and supersedes such filing in its entirety. 

4The term ‘‘System’’ is defined as ‘‘the electronic 

communications and trading facility designated by 

the Board through which securities orders of Users 

are consolidated for ranking, execution and, when 

applicable, routing away.’’ See Exchange Rule 

1.5(cc). 

5See Mary Jo White, Chair, Commission, Speech 

at the Sandler O’Neill & Partners, L.P. Global 

Exchange and Brokerage Conference, (June 5, 2014) 

(available at http://www.sec.gov/News/Speech/

Detail/Speech/1370542004312#.VD2HW610w6Y). 

6Securities Exchange Act Release No. 73592 

(November 13, 2014), 79 FR 68937 (November 19, 

2014) (SR–EDGA–2014–20). 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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– 

OCC–2015–03 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–OCC–2015–03. 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 the 

filing also will be available for 

inspection and copying at the principal 

office of OCC and on OCC’s Web site at 

http://www.theocc.com/components/

docs/legal/rules_and_bylaws/sr_occ_15_

03.pdf. 

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–OCC–2015–03 and should 

be submitted on or before March 31, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–05479 Filed 3–9–15; 08:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74435; File No. SR–EDGA– 

2015–10] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing of a 

Proposed Rule Change, as Modified by 

Amendment No. 1, To Amend Rules 

11.6, 11.8, 11.9, 11.10 and 11.11 of 

EDGA Exchange, Inc. 

March 4, 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 February 

20, 2015, EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) 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 

by the self-regulatory organization. On 

February 27, 2015, the Exchange filed 

Amendment No. 1 to the proposal.3 The 

Commission is publishing this notice, as 

modified by Amendment No. 1, 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 filed a proposal to 

amend Rules 11.6, 11.8, 11.9, 11.10 and 

11.11 to clarify and to include 

additional specificity regarding the 

current functionality of the Exchange’s 

System,4 including the operation of its 

order types and order instructions, as 

further described below. 

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 the 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On June 5, 2014, Chair Mary Jo White 

asked all national securities exchanges 

to conduct a comprehensive review of 

each order type offered to members and 

how it operates.5 The Exchange notes 

that a comprehensive rule filing 

clarifying and updating Exchange rules 

was recently approved.6 However, based 

on the request from Chair White, the 

Exchange did indeed conduct further 

review of each order types and its 

operation. The proposals set forth below 

are based on this comprehensive review 

and are intended to clarify and to 

include additional specificity regarding 

the current functionality of the 

Exchange’s System, including the 

operation of its order types and order 

instructions. The proposals set forth 

below are intended to supplement the 

recently approved filing based on 

further review conducted by the 

Exchange and are intended to clarify 

and enhance the understandability of 

mstockstill on DSK4VPTVN1PROD with NOTICES