15042 Federal Register / Vol. 80, No. 54 / Friday, March 20, 2015 / Notices 

7 15 U.S.C. 78o–3(b)(6). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

rule change will be July 31, 2015, which 

is the current expiration date of FINRA 

Rule 3110.15. The proposed rule change 

extends the expiration date of FINRA 

Rule 3110.15 until December 1, 2015. 

As proposed, FINRA Rule 3110.15 will 

have a retroactive effective date of April 

24, 2014, and it will automatically 

expire on December 1, 2015. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,7 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

temporary refund program under FINRA 

Rule 3110.15 incentivizes members to 

disclose underreported information 

relating to judgments and liens and 

saves FINRA the time and regulatory 

resources expended in contacting firms 

and requesting that such information be 

reported and that extending the 

expiration date of the refund program 

will more effectively achieve that 

purpose. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

The temporary refund program under 

FINRA Rule 3110.15 encourages 

members to comply with their existing 

reporting obligations and allows them to 

receive a refund of Late Disclosure Fees 

if the conditions specified in FINRA 

Rule 3110.15 are satisfied. As such, 

FINRA does not believe that extending 

the expiration date of the temporary 

refund program will result in any 

burden on members. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor 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) of the Act 8 and Rule 19b– 

4(f)(6) thereunder.9

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– 

FINRA–2015–005 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–FINRA–2015–005. 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 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of 

FINRA. 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–FINRA–2015–005 and 

should be submitted on or before April 

10, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06360 Filed 3–19–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74511; File No. SR–OCC– 

2015–006] 

Self-Regulatory Organizations; the 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change 

Concerning the Provision of Clearance 

and Settlement Services for Energy 

Futures and Options on Energy 

Futures 

March 16, 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 March 2, 

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 primarily 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 

The purpose of this proposed rule 

change by The Options Clearing 

Corporation (‘‘OCC’’) is to provide 

clearance and settlement services for 

energy futures contracts (‘‘Energy 

Futures’’) and options on Energy 

Futures contracts. In order to do so, 

OCC is proposing to add new risk 

models to its STANS methodology as 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 54 / Friday, March 20, 2015 / Notices 15043 

3The Clearing Agreement is the subject of a 

pending proposed rule change by filed OCC (SR– 

OCC–2015–03). This proposed rule change has not 

yet been published by the Commission. SR–OCC– 

2015–03 is publically available at: http://

www.theocc.com/components/docs/legal/rules_

and_bylaws/sr_occ_15_03.pdf. (The staff notes that 

the rule change was filed by the Commission on 

March 4, 2015 and subsequently published in the 

Federal Register. See Securities Exchange Act 

Release No. 74432 (March 4, 2015), 80 FR 12652 

(March 10, 2015)). 

4OCC believes that its existing risk models for 

options on futures contracts would appropriately 

manage risk for options on Energy Futures when 

used in conjunction with the proposed new risk 

models for Energy Futures. 5OCC would compute initial margin 

requirements for segregated futures accounts 

through the Standard Portfolio Analysis of Risk 

(‘‘SPAN’’®) margin calculation system without 

further modification, subject to OCC’s collection of 

enhanced margin to be deposited in the segregated 

futures account in the event that the margin 

requirement as calculated under STANS would 

exceed the requirement calculated under SPAN. See 

Securities Exchange Act Release No. 72331 (June 5, 

2014), 79 FR 33607 (June 11, 2014) (SR–OCC–2014– 

13). See also Securities Exchange Act Release No. 

74268 (February 12, 2015), 80 FR 8917 (February 

19, 2015) (SR–OCC–2014–24). This rule change has 

been approved by the Commission. 

6Energy Futures and options on Energy Futures 

would trade during overnight trading sessions. See 

Securities Exchange Act Release No. 74241 

(February 10, 2015), 80 FR 8383 (February 17, 2015) 

SR–OCC–2014–812. 

7More specifically, Energy Futures are look-alike 

products to futures products that are currently 

traded on the New York Mercantile Exchange, Inc. 

and ICE Futures, U.S., and cleared by the Chicago 

Mercantile Exchange Inc. and ICE Clear U.S., Inc., 

respectively. 

8Locational marginal pricing reflects the value of 

the energy at the specific location and time it is 

delivered. 

well as to add a new ‘‘Schedule C’’ to 

the Agreement for Clearing and 

Settlement Services between OCC and 

NASDAQ Futures, Inc. (‘‘NFX’’) (the 

‘‘Clearing Agreement’’).3

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 

The purpose of this proposed rule 

change is to provide clearance and 

settlement services for Energy Futures 

and options on Energy Futures. As 

described more fully below, OCC is 

proposing to add new risk models to its 

STANS methodology that are designed 

to risk manage Energy Futures.4 The 

STANS methodology already 

accommodates the margining of futures 

and futures options and, after adopting 

the models described in this proposed 

rule change, Energy Futures would be 

risk managed using the same 

methodology as futures products 

currently cleared and settled by OCC.5

In addition, OCC is proposing to add a 

new Schedule C to the Clearing 

Agreement since Energy Futures and 

options on Energy Futures are not types 

of contracts for which OCC has 

previously agreed to provide clearance 

and settlement services to NFX. 

Energy Futures Background 

OCC is proposing to clear and settle 

25 Energy Futures and 3 futures options 

that are proposed to be traded on NFX.6

These 25 Energy Futures include 9 

futures contracts on petrol and natural 

gas products, 3 of which will have 

related options contracts, and 16 futures 

contracts on electricity. The proposed 

Energy Futures contracts are all cashsettled futures products, and the three 

options on futures contracts (as 

described below) will settle into the 

underlying Energy Futures contract. All 

of the Energy Futures contracts are 

‘‘look-alike’’ products to futures 

products already traded on U.S. futures 

exchanges and cleared by other 

Derivatives Clearing Organizations 

(‘‘DCOs’’).7

Proposed Petrol and Natural Gas 

Futures Products 

NFX will list petrol and natural gas 

futures contracts and options on petrol 

futures contracts. The futures are based 

on a variety of refined oil fuels and 

natural gasses that are commonly used 

for hedging market participants’ 

portfolios. Specifically, NFX will list the 

following cash-settled petrol and natural 

gas futures contracts: NFX Brent Crude 

Financial Futures (BFQ), NFX Gasoil 

Financial Futures (GOQ), NFX Heating 

Oil Financial Futures (HOQ), NFX WTI 

Crude Oil Financial Futures (CLQ), NFX 

RBOB Gasoline Financial Futures 

(RBQ), NFX Henry Hub Natural Gas 

Financial Futures—10,000 (HHQ), NFX 

Henry Hub Natural Gas Financial 

Futures—2,500 (NNQ), NFX Henry Hub 

Natural Gas Penultimate Financial 

Futures—2,500 (NPQ) and NFX Henry 

Hub Natural Gas Penultimate Financial 

Futures—10,000 (HUQ). 

Further, NFX will list options on NFX 

WTI Crude Financial Futures (LOQ), 

NFX Brent Crude Financial Futures 

(BCQ) and the NFX Henry Hub 

Penultimate Financial Futures (LNQ) 

that settle directly into the referenced 

futures contract. 

Proposed Electricity Futures Products 

NFX will also list electricity futures. 

These electricity futures are based on 

electricity prices at different hubs and 

smaller nodes from across the United 

States reflecting different power 

distribution grids and circuits and are 

look-alike products to products traded 

on ICE Futures, U.S. and cleared by ICE 

Clear U.S., Inc. For each of these nodes, 

there is a ‘‘peak’’ and ‘‘off-peak’’ future 

representing prices at time periods in 

the day when electricity usage is high 

compared to when the demand on the 

grid is lower. The electricity futures 

NFX selected for listing are the most 

popular nodes and hubs within the 

electricity futures market. More 

specifically, NFX will list the following 

electricity contracts, to be settled on 

final settlement prices based on an 

average regional transmission 

organization, independent system 

operator (‘‘ISO’’) published real-time or 

day-ahead locational marginal prices 

(‘‘LMPs’’) 8 for a pre-determined set of 

peak or off-peak hours for a contract 

month: 

• NFX ISO–NE Massachusetts Hub 

Day-Ahead Off-Peak Financial Future 

(NOPQ), settling on final settlement 

prices based on average day-ahead 

hourly off-peak LMPs for the contract 

month for the Massachusetts Hub. 

• NFX ISO–NE Massachusetts Hub 

Day-Ahead Peak Financial Futures 

(NEPQ), settling on final settlement 

prices based on average day-ahead 

hourly peak LMPs for the contract 

month for the Massachusetts Hub. 

• NFX MISO Indiana Hub Real-Time 

Peak Financial Futures (CINQ), settling 

on final settlement prices based on 

average real-time hourly peak LMPs for 

the contract month for the Indiana Hub 

as published by the Midcontinent 

Independent System Operator, Inc. 

(‘‘MISO’’). 

• NFX MISO Indiana Hub Real-Time 

Off-Peak Financial Futures (CPOQ), 

settling on final settlement prices based 

on average real-time hourly off-peak 

LMPs for the contract month for the 

Indiana Hub as published by MISO. 

• NFX PJM AEP Dayton Hub RealTime Peak Financial Futures (MSOQ), 

settling on final settlement prices based 

on average real-time hourly peak LMPs 

for the contract month for the AEP 

Dayton Hub. 

• NFX PJM AEP Dayton Hub RealTime Off-Peak Financial Futures 

(AODQ), settling on final settlement 

prices based on average real-time hourly 

mstockstill on DSK4VPTVN1PROD with NOTICES

15044 Federal Register / Vol. 80, No. 54 / Friday, March 20, 2015 / Notices 

9 In developing its risk models for Energy Futures, 

OCC also considered a third characteristic, namely 

that electricity markets are known to be 

geographically segmented, which can cause abrupt 

and unanticipated changes in spot prices. However, 

after reviewing relevant academic literature and 

performing internal testing, OCC determined that 

adjusting its futures risk models to account for 

changes in the spot price of electricity was not 

appropriate. See Kholopova, M. (2006) ‘‘Estimating 

a two-factor model for the forward curve of 

electricity,’’ Ph.D. dissertation. 

10See Samuelson, Paul A., ‘‘Proof that Properly 

Anticipated Prices Fluctuate Randomly,’’ Industrial 

Management Review, Vol. 6 (1965). No other 

futures contracts for which OCC provides clearance 

and settlement services exhibit the Samuelson 

effect. 

11See Schwartz, E. and J. Smith (2000) ‘‘Shortterm variations and long-term dynamics in 

commodity prices,’’ Management Science, vol. 46, 

pp. 893–911. The supply of Brent Crude Oil and 

WTI Crude Oil is not affected by seasonal variation 

in demand since there are low-cost transportation 

methods for Brent Crude Oil and WTI Crude Oil as 

well as the ability to store Brent Crude Oil and WTI 

Crude Oil. 

12The model assumes that past price information 

is already incorporated into the current price and 

the next price movement is conditionally 

independent of past price movements. 

Additionally, the long-run factor accounts for ‘‘fat 

tail’’ events. 13This is often observed as shorter dated futures 

contracts exhibit greater volatility than longer dated 

futures contracts. 14OCC’s proposed model is based upon recent 

academic literature on energy futures. See Mirantes, 

A., J. Poblacion and G. Serna (2012) ‘‘The stochastic 

seasonal behavior of natural gas prices,’’ European 

Financial Management, vol. 18, pp. 410–443. 15This is due to the lack of low-cost 

transportation and limited, or no, ability to store the 

commodity. 

off-peak LMPs for the contract month 

for the AEP Dayton Hub. 

• NFX PJM Northern Illinois Hub 

Real-Time Peak Financial Futures 

(PNLQ), settling on final settlement 

prices based on average real-time hourly 

peak LMPs for the contract month for 

the Northern Illinois Hub. 

• NFX PJM Northern Illinois Hub 

Real-Time Off-Peak Financial Futures 

(NIOQ), settling on final settlement 

prices based on average real-time hourly 

off-peak LMPs for the contract month 

for the Northern Illinois Hub. 

• NFX PJM Western Hub Day-Ahead 

Off-Peak Financial Futures (PJDQ), 

settling on final settlement prices based 

on average day-ahead hourly off-peak 

LMPs for the contract month for the 

Western Hub. 

• NFX PJM Western Hub Day-Ahead 

Peak Financial Futures (PJCQ), settling 

on final settlement prices based on 

average day-ahead hourly peak LMPs for 

the contract month for the Western Hub. 

• NFX PJM Western Hub Real-Time 

Off-Peak Financial Futures (OPJQ), 

settling on final settlement prices based 

on average real-time hourly off-peak 

LMPs for the contract month for the 

Western Hub. 

• NFX PJM Western Hub Real-Time 

Peak Financial Future (PJMQ), settling 

on final settlement prices based on 

average real-time hourly peak LMPs for 

the contract month for the Western Hub. 

• NFX CAISO NP–15 Hub Day-Ahead 

Off-Peak Financial Futures (ONPQ), 

settling on final settlement prices based 

on average day-ahead hourly off-peak 

LMPs for the contract month for the NP– 

15 Hub. 

• NFX CAISO NP–15 Hub Day-Ahead 

Peak Financial Futures (NPMQ), settling 

on final settlement prices based on 

average day-ahead hourly peak LMPs for 

the contract month for the NP–15 Hub. 

• NFX CAISO SP–15 Hub Day-Ahead 

Off-Peak Financial Futures (OFPQ), 

settling on final settlement prices based 

on average day-ahead hourly off-peak 

LMPs for the contract month for the SP– 

15 Hub. 

• NFX CAISO SP–15 Hub Day-Ahead 

Peak Financial Futures (SPMQ), settling 

on final settlement prices based on 

average day-ahead hourly peak LMPs for 

the contract month for the SP–15 Hub. 

Risk Model Changes 

Background 

The proposed Energy Futures are 

look-alike products to energy futures 

traded on other futures exchanges and 

cleared by other DCOs. Accordingly, 

there is a significant amount of 

historical data and academic literature 

concerning risk models for energy 

futures, as discussed below. OCC has 

used such data and literature in the 

development of its risk models for 

Energy Futures. 

Based on such data and literature, 

OCC has identified two characteristics 

specific to energy futures (compared to 

futures contracts already cleared, settled 

and risk managed by OCC) for which 

new risk models need to be added to the 

STANS methodology: 9

• Energy futures prices are known to 

be more volatile as contracts approach 

delivery because of the convergence 

with cash-market prices and the 

potential for real-life trading and 

delivery complications of the 

underlying commodity. This 

phenomenon is known as the 

‘‘Samuelson effect,’’ 10 and 

• The price volatility of certain 

energy futures display a seasonal 

pattern (a/k/a ‘‘seasonality’’). 

In order to address these characteristics, 

OCC has designed multi-factor risk 

modeling capabilities that can risk 

model based on up to three factors: A 

short-run factor, a seasonal factor and a 

long-run factor. The short-run factor is 

designed to account for the Samuelson 

effect, which becomes more pronounced 

the closer the contract is to maturity 

(i.e., delivery). The seasonal factor 

accounts for Energy Futures contracts 

that display volatility in a seasonal 

pattern, and the long-run factor 

accounts for the risk of a given Energy 

Future not addressed by either the 

short-run factor or the seasonal factor. 

OCC’s multi-factor models can be 

further categorized as either a two-factor 

model or three-factor model. The two 

factor model consists of a short-run and 

long-run factor, while the three-factor 

model consists of a short-run factor, 

long-run factor and seasonality factor. 

Two-Factor Model 

OCC plans to use a two-factor risk 

model to compute theoretical prices for 

NFX Brent Crude Financial Futures 

contracts and NFX WTI Crude Oil 

Financial Futures contracts since such 

futures do not exhibit seasonality.11 The 

two-factor risk model will derive a given 

Energy Future’s price based on a longrun factor and a short-run factor. The 

long-run factor component captures 

changes to the equilibrium price (i.e., 

the prevailing market price at a point in 

time) of a given Energy Future based on 

factors such as expectations of the 

exhaustion of existing supply, 

improving technology for production, 

the discovery of additional supply of the 

commodity, inflation and political and 

regulatory effects. Based on historical 

data, OCC assumes that such long-run 

factors cause the equilibrium price for a 

given Energy Future to evolve according 

to a stochastic process that accounts for 

asymmetric skewness and excess 

kurtosis.12 The short-run component 

captures short-run changes in demand 

or supply due to real-life factors such as 

variation in the weather or intermittent 

supply disruptions as well as increased 

volatility (i.e., the Samuelson effect).13

The short-run component of the model 

is mean reverting; therefore, in the 

absence of such short-term changes in 

demand or supply the long-run factor 

should determine the price for a given 

Energy Future. Additionally, the shortrun is less noticeable as the tenor of the 

Energy Futures contract increases. 

Three-Factor Model 

OCC plans to use a three-factor risk 

model in order to compute theoretical 

prices for the remainder of the Energy 

Futures.14 The three-factor model uses 

the same long-run and short-fun factor 

components as the two-factor model and 

adds a seasonality factor. Based on 

historical data, all Energy Futures 

except for Energy Futures on Brent 

Crude Oil and WTI Crude Oil 

experience seasonality.15 In order to 

address seasonality, OCC would employ 

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Federal Register / Vol. 80, No. 54 / Friday, March 20, 2015 / Notices 15045 

16See note 13 supra. 17Cleared futures contracts account for less than 

two percent of OCC’s total overall volume and, in 

2011, OCC cleared 1,388 contracts traded on NFX. 

In 2012, OCC cleared 518,360 contracts traded on 

NFX (NFX did not have any cleared futures contract 

volume in 2013 and 2014). By way of reference, 

OCC’s average daily cleared contract volume in 

through February 19, 2015, is 17 million contracts. 

18 15 U.S.C. 78q–1(b)(3)(F). 

19 17 CFR 240.17Ad–22(b)(2). 

20 15 U.S.C. 78q–1(b)(3)(I). 21 17 CFR 200.30–3(a)(12). 

a trigonometric function,16 which 

captures price dynamics in different 

seasons. 

Based on the above, OCC believes that 

the proposed enhancements to STANS 

have been appropriately designed to 

support the clearance and settlement of 

Energy Futures, which belief is 

supported by model back testing results. 

Moreover, energy futures are not new or 

novel contracts, and the clearance and 

settlement of Energy Futures does not 

present material risk to OCC.17

Schedule C to the Clearing Agreement 

OCC also proposes to add a Schedule 

C to the Clearing Agreement in order to 

support the clearance and settlement of 

Energy Futures and options on Energy 

Futures. OCC performs clearance and 

settlement services for NFX pursuant to 

the Clearing Agreement. Pursuant to the 

terms of the Clearing Agreement, OCC 

has agreed to clear the specific types of 

contracts enumerated in the Clearing 

Agreement and may agree to clear and 

settle additional types of contracts 

through the execution by both parties of 

a new Schedule C to the Clearing 

Agreement. Energy Futures and options 

on Energy Futures are not enumerated 

in the Clearing Agreement, nor do they 

fall under an existing Schedule C to the 

Clearing Agreement. Therefore, a new 

Schedule C providing for the clearance 

and settlement of Energy Futures and 

options on Energy Futures is required. 

A copy of such Schedule C is attached 

hereto as Exhibit 3. 

2. Statutory Basis 

OCC believes that the proposed rule 

change is consistent with Section 

17A(b)(3)(F) of the Act 18 because it will 

assure the safeguarding of securities and 

funds which are in the custody and 

control of OCC. OCC believes that the 

proposed rule change assures the 

safeguarding of securities and funds in 

the custody and control of OCC because 

it would permit OCC to risk manage 

Energy Futures through appropriate risk 

models as described above. Such risk 

models would reduce the risk that 

clearing member margin assets would be 

insufficient should OCC need to use 

such assets to close-out the positions of 

a defaulted clearing member. In 

addition, the proposed rule change is 

consistent with Rule 17Ad–22(b)(2) 

under the Act,19 because the proposed 

rule change would allow OCC to 

implement risk-based models and 

parameters, as described above, to set 

margin requirements for clearing 

members who trade Energy Futures. The 

proposed rule change is not inconsistent 

with any existing OCC By-Laws or 

Rules, including any 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.20 As described 

above, the proposed rule change 

concerns implementation of certain 

enhancements to OCC’s risk models in 

order to facilitate the margining of 

clearing member positions in Energy 

Futures. OCC does not believe that these 

enhancements will affect the ability of 

clearing members or other market 

participants to clear Energy Futures or 

otherwise limit market participants’ 

choices for selecting clearing services. 

In addition, the proposed rule change 

will uniformly affect all clearing 

members who trade Energy Futures. 

(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. 

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 

the 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 Commissions 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–2015–006 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–2015–006. 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 Section, 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 

office of OCC and on OCC’s Web site at 

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

docs/legal/rules_and_bylaws/sr_occ_15_

006.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–2015–006 and should 

be submitted on or before April 10, 

2015. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

Authority.21

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06359 Filed 3–19–15; 8:45 am] 

BILLING CODE 8011–01–P 

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