13934 Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices 

6 In addition, Rule 19b–4(f)(6)(iii) requires the 

Exchange to give the Commission written notice of 

the Exchange’s 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 of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Commission has waived the 5- 

day prefiling requirement in this case. 

7For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 8 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(7). 

2 7 U.S.C. 7a–2(c). 

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, the 

proposed rule change has become 

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

of the Act and Rule 19b–4(f)(6) 

thereunder.6

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay 

because the Transfer is intended to be 

completed in less than 30 days. The 

Commission believes that an earlier 

operative date will ensure that the filing 

is effective prior to the intended 

completion of the Transfer in less than 

30 days. Based on the foregoing, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest.7 The Commission 

hereby grants the Exchange’s request 

and designates the proposal operative 

upon filing. 

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. 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– 

SR–BOX–2015–14 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–BOX–2015–14. 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 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–BOX– 

2015–14 and should be submitted on or 

before April 7, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06020 Filed 3–16–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74483; File No. SR–CFE– 

2015–002] 

Self-Regulatory Organizations; CBOE 

Futures Exchange, LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Regarding 

Exchange of Contract for Related 

Position Transactions and Block 

Trades 

March 11, 2015. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

February 25, 2015 CBOE Futures 

Exchange, LLC (‘‘CFE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change described in 

Items I, II, and III below, which Items 

have been prepared by CFE. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. CFE 

also has filed this proposed rule change 

with the Commodity Futures Trading 

Commission (‘‘CFTC’’). CFE filed a 

written certification with the CFTC 

under Section 5c(c) of the Commodity 

Exchange Act (‘‘CEA’’)2 on February 25, 

2015. 

I. Self-Regulatory Organization’s 

Description of the Proposed Rule 

Change 

The Exchange proposes to amend its 

rules related to Exchange of Contract for 

Related Position (‘‘ECRP’’) transactions 

and block trades. The scope of this filing 

is limited solely to the application of the 

rule amendments to security futures 

traded on CFE. The only security futures 

currently traded on CFE are traded 

under Chapter 16 of CFE’s Rulebook 

which is applicable to Individual Stock 

Based and Exchange-Traded Fund 

Based Volatility Index security futures. 

The text of the proposed rule change is 

attached as Exhibit 4 to the filing but is 

not attached to the publication of this 

notice. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, CFE 

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 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices 13935 

3CFE Rule 414(h) and CFE Rule 415(f) require 

that each CFE Trading Privilege Holder (‘‘TPH’’) 

executing an Exchange of Contract for Related 

Position transaction or a side of a block trade must 

have designated at least one Authorized Reporter 

that is pre-authorized by a CFE clearing member to 

report the ECRP transaction or block trade on behalf 

of the TPH. 

4CME Group, Market Regulation Advisory Notice 

(Aug. 4, 2014), Q&A22, available at http://

www.cmegroup.com/rulebook/files/ra1311-5r.pdf. 

5 ICE Futures U.S., EFRP FAQs (Sept. 5, 2014), 

Q&A 17, available at https://www.theice.com/

publicdocs/futures_us/EFRP_FAQ.pdf. 6CFE Rule 414 (g) requires that each TPH 

involved in any ECRP transaction shall either 

maintain records evidencing compliance with the 

criteria set forth in Rule 414 or be able to obtain 

such records from its Customer involved in the 

ECRPs. Information required to be maintained but 

which is not systematically provided in conjunction 

with the processing of these trades may include the 

options delta utilized at the time of the trade in 

order to demonstrate that the Contract transaction 

would serve as an appropriate hedge for the Related 

Position. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78f(b)(7). 

in Item IV below. CFE 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 the proposed CFE rule 

amendments included as part of this 

rule change is to: (i) Amend CFE Rule 

414 (Exchange of Contract for Related 

Position) to extend the time to report 

ECRP transactions to the Exchange from 

ten minutes to thirty minutes; and (ii) 

amend CFE Rules 414 and 415 (Block 

Trading) to clarify that the CFE Help 

Desk can provide written transaction 

summaries for ECRP transactions and 

block trades on the business day for 

which the transaction is submitted for 

clearing or the calendar day of the 

transaction. The rule amendments 

included as part of this rule change are 

to apply to all products traded on CFE, 

including both non-security futures and 

security futures. 

Reporting Timeframe for ECRP 

Transactions 

CFE is proposing to amend CFE Rule 

414 (Exchange of Contract for Related 

Position) to extend the timeframe for 

reporting ECRP transactions. CFE Rule 

414 currently provides that each party 

to an ECRP transaction is obligated to 

have an Authorized Reporter (which is 

defined in CFE Rule 414(h) and 415(f)) 3

notify the CFE Help Desk of the terms 

of the ECRP transaction no later than ten 

minutes after the transaction is agreed 

upon. The amendments extend this 

current reporting window for ECRP 

transactions to thirty minutes. 

CFE believes this extension is 

justified for the following reasons. First, 

it will allow CFE to stay competitive 

with other futures exchanges that 

currently provide market participants 

with additional time to report these 

transactions. Specifically, CME Group 

provides that such transactions ‘‘must 

be submitted within one hour after the 

relevant terms have been determined,’’ 4

and ICE Futures U.S. provides no 

definitive timeframe and rather that 

such transactions ‘‘should be submitted 

to the Exchange as soon as possible 

following agreement to the terms by the 

relevant parties.’’ 5 Second, the 

extension takes into account the 

specific, logistical aspects associated 

with these off-exchange transactions, 

which entail related transactions in two 

different instruments. Specifically, 

ECRP transactions in CFE products 

frequently involve contra-parties that 

operate on a trading floor instead of an 

office setting. In addition, the required 

recordkeeping presents logistical issues 

as each contra-party to an ECRP must 

coordinate with an Authorized Reporter 

to report to the CFE Help Desk the 

relevant ECRP transaction as well as 

collect or create records evidencing 

compliance with the criteria set forth in 

CFE Rule 414 as required by CFE Rule 

414 (g).6 CFE believes a limited 

additional window for compliance is 

justified given these logistical aspects. 

Accordingly, CFE believes that 

extending the timeframe from ten to 

thirty minutes represents a sound 

balance that takes into account the 

above competitive and logistical 

considerations while remaining 

sufficiently limited in duration so as not 

to be detrimental to CFE’s market. 

Clarification Regarding Written 

Summaries for ECRP Transactions and 

Block Trades 

CFE is proposing to amend CFE Rule 

414 (Exchange of Contract for Related 

Position) and CFE Rule 415 (Block 

Trading) to clarify that the CFE Help 

Desk can provide written transaction 

summaries for ECRP transactions and 

block trades on the business day for 

which the transaction is submitted for 

clearing or the calendar day of the 

transaction. CFE Rules 414 and 415 

currently contain language that imply 

that the CFE Help Desk always provides 

a written transaction summary of an 

ECRP transaction or a block trade on the 

business day for which the transaction 

is submitted for clearing. The 

amendments clarify that the CFE Help 

Desk can provide a written transaction 

summary of an ECRP transaction or 

block trade to each Authorized Reporter 

on either the business day for which the 

transaction is submitted for clearing or 

on the calendar day of the transaction. 

For ECRP transactions and block 

trades that occur during most of the 

trading day, the CFE Help Desk would 

provide a transaction summary on the 

business day for which the transaction 

is submitted for clearing. However, 

there are circumstances in which the 

CFE Help Desk would provide a 

transaction summary on the calendar 

day of the transaction and not on the 

business day for which the transaction 

is submitted for clearing. For example, 

this could occur if an ECRP transaction 

or block trade in CBOE Volatility Index 

(‘‘VIX’’) futures was reported to the CFE 

Help Desk between 3:30 p.m. and 4:00 

p.m. on a Monday through Thursday 

and was designated by the parties for 

clearance on the calendar day of the 

transaction. In that case, the next 

business day would have already started 

when the transaction is reported to the 

CFE Help Desk pursuant to the extended 

trading hours schedule in VIX futures, 

as the prior business day would have 

ended at 3:15 p.m. and the new business 

day would have started at 3:30 p.m. 

Accordingly, the CFE Help Desk would 

be providing a written transaction 

summary to the Authorized Reporters 

on the calendar day of the transaction 

and not on the business day for which 

the transaction would be submitted for 

clearing (since in this case the 

transaction would be submitted for 

clearing for the prior business day). 

CFE is also making a technical, nonsubstantive change to CFE Rule 415(c) 

to correct a typographical error. Rule 

415(c) incorrectly references Rule 415(i) 

for the reporting deadline instead of to 

Rule 415(g) where the relevant reporting 

deadline is contained and this rule 

change corrects this cross-reference. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,7 in general, and 

furthers the objectives of Sections 

6(b)(5) 8 and 6(b)(7) 9 in particular in 

that it is designed: 

• To foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and 

• to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and in general, to protect 

investors and the public interest. 

mstockstill on DSK4VPTVN1PROD with NOTICES

13936 Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices 

10See CME Group, Market Regulation Advisory 

Notice (Aug. 4, 2014), Q&A22, available athttp://

www.cmegroup.com/rulebook/files/ra1311-5r.pdf; 

ICE Futures U.S., EFRP FAQs (Sept. 5, 2014), Q&A 

17, available athttp://www.theice.com/publicdocs/

futures_us/EFRP_FAQ.pdf. 11 15 U.S.C. 78s(b)(1). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

The Exchange believes that the 

proposed rule change would benefit 

market participants because it would 

provide them with a limited amount of 

additional time to report ECRP 

transactions. First, the change will allow 

CFE to stay competitive with other 

futures exchanges that currently provide 

market participants with additional time 

to report these transactions.10 Second, 

the extension takes into account the 

logistical aspects associated with these 

transactions, which entail related 

transactions in two different 

instruments. Specifically, ECRP 

transactions involve contra-parties 

operating on a trading floor instead of 

an office setting. In addition, the 

required recordkeeping presents 

logistical issues as each contra-party to 

an ECRP must coordinate with an 

Authorized Reporter to report to the 

CFE Help Desk its ECRP transaction as 

well as conduct the required 

recordkeeping manually. CFE believes 

extending the timeframe from ten to 

thirty minutes represents a sound 

balance that takes into account the 

above competitive and logistical 

considerations while remaining 

sufficiently limited in duration so as not 

to be detrimental to CFE’s market. 

In addition, the proposed rule change 

benefits market participants by 

clarifying to them that their Authorized 

Reporters will receive written 

transactions summaries: (i) Regarding 

ECRP transactions on either the 

business day for which the contract leg 

of the ECRP transaction is submitted for 

clearing or the calendar day of the 

transaction; and (ii) regarding block 

trades, on either the business day for 

which the block trade is submitted for 

clearing or on the calendar day of the 

transaction. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CFE does not believe that the 

proposed rule change will impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. Specifically, the 

Exchange believes that the proposed 

rule change will not burden competition 

because the new ECRP reporting 

timeframe and timeframe for receiving 

written summaries of ECRP transactions 

and block trades will apply to all 

persons and the revised rule provisions 

do not discriminate between market 

participants. 

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 proposed rule change will 

become effective on March 11, 2015. 

At any time within 60 days of the date 

of effectiveness of the proposed rule 

change, the Commission, after 

consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refiled in accordance 

with the provisions of Section 19(b)(1) 

of the Act.11

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– 

CFE–2015–002 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–CFE–2015–002. 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–CFE– 

2015–002, and should be submitted on 

or before April 7, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06013 Filed 3–16–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74476; File No. SR–OCC– 

2015–005] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change 

Concerning the Account From Which 

Certain Clearing Members May Fund 

the Additional Margin Requirement 

Associated With Overnight Trading 

Sessions 

March 11, 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 

26, 2015, The Options Clearing 

Corporation (‘‘OCC’’) 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 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 

This proposed rule change by The 

Options Clearing Corporation (‘‘OCC’’) 

would permit an OCC clearing member 

that is a registered futures commission 

merchant (‘‘FCM’’) that has been 

mstockstill on DSK4VPTVN1PROD with NOTICES