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

Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices 13937 

3See Securities Exchange Act Release No. 74268 

(February 12, 2015), 80 FR 8917 (February 19, 2015) 

(SR–OCC–2014–24). See also Securities Exchange 

Act Release No. 74241 (February 10, 2015), 80 FR 

8383 (February 17, 2015) (SR–OCC–2014–812). This 

rule change has been approved by the Commission. 

OCC implemented the Prior Filing on March 2, 

2015. 

4Additional details about such Additional 

Margin, including the manner in which OCC will 

calculate the required amount of Additional 

Margin, are included in the Prior Filing. 

5Several OCC clearing members that are FCMs 

that only carry customer accounts have been 

participating in overnight trading sessions on CBOE 

Futures Exchange, LLC. 

6See OCC By-Laws Article V, section 1. In order 

to be approved for a proprietary account, FCMs 

would subject to OCC’s business expansion process 

that takes approximately three months to complete. 

7Under the Prior Filing, because the Additional 

Margin would be deposited in respect of a 

proprietary account, the source of the Additional 

Margin would by necessity consist of proprietary 

funds. Under the proposed rule change the source 

of the Additional Margin could be customer funds 

to the extent permitted by applicable regulations. 

8 15 U.S.C. 78q–1(b)(3)(F). 

approved to clear customer futures 

transaction, but that has not been 

approved to clear proprietary futures 

transactions, to participate in overnight 

trading sessions by allowing such a 

clearing member to post additional 

margin equal to the lesser of $10 million 

or 10% of the clearing member’s net 

capital (‘‘Additional Margin’’) with OCC 

in the clearing member’s customer 

segregated futures account instead of its 

proprietary account. 

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 

This proposed rule change would 

permit an OCC clearing member that is 

a registered FCM that has been 

approved to clear futures customer 

transactions, but that has not been 

approved to clear proprietary futures 

transactions (i.e., is not authorized to 

maintain a firm account with OCC), to 

participate in overnight trading sessions 

by depositing the Additional Margin 

required to participate in overnight 

trading sessions in the clearing 

members’ segregated futures account at 

OCC, instead of requiring such a 

clearing member to establish and 

maintain a proprietary account solely 

for this purpose. 

By way of background, OCC recently 

submitted a proposal to the Commission 

that allows for the clearance of 

confirmed trades that are executed in 

overnight trading sessions and are 

offered by exchanges for which OCC 

provides clearance and settlement 

services (‘‘Prior Filing’’).3 Pursuant to 

the Prior Filing, OCC would impose an 

Additional Margin requirement on 

clearing members eligible to participate 

in overnight trading sessions. The Prior 

Filing states that the Additional Margin 

must be posted by participating clearing 

members in their proprietary account. 

The Additional Margin requirement is 

designed to ensure that, if a clearing 

member’s credit risk increases during an 

overnight trading session, OCC will 

have access to the Additional Margin 

notwithstanding that OCC will not be 

able to draft a clearing member’s bank 

account for funds because settlement 

banks are closed during overnight 

hours.4 OCC believes that requiring 

clearing members that are registered 

FCMs, and are only approved to carry 

customer accounts, to establish and 

maintain proprietary accounts solely for 

the purpose of posting Additional 

Margin to participate in overnight 

trading sessions would be an inefficient 

use of OCC’s and the clearing members’ 

resources and would lead to 

unnecessary operational complexity. 

A small number of OCC clearing 

members are registered FCMs that only 

carry customer accounts and therefore 

do not currently maintain a proprietary 

account at OCC. Pursuant to the Prior 

Filing, if an FCM that only carries 

customer accounts wants to participate, 

or continue participating,5 in overnight 

trading sessions it must establish a 

proprietary account at OCC solely for 

the purpose of posting Additional 

Margin. Such an FCM would be 

required to go through the process that 

OCC clearing members must complete 

in order to be approved to maintain a 

proprietary account that, by the nature 

of FMC business, would not carry 

positions.6 Additionally, in the event of 

a clearing member default, all or a 

portion of the Additional Margin would 

be transferred from the defaulting 

clearing member’s proprietary account 

to its customer segregated futures 

account. These additional steps would 

not be required if the clearing member 

posts Additional Margin in its customer 

segregated futures account. Therefore, 

OCC is proposing to allow FCMs 

participating in overnight trading 

sessions that do not currently maintain 

a proprietary account at OCC to post any 

required Additional Margin in their 

customer segregated futures account. 

OCC is not proposing to alter in any 

way the manner in which Additional 

Margin is calculated or any other 

procedures governing overnight trading 

sessions. Rather, OCC is only proposing 

to allow FCM clearing members that do 

not maintain proprietary accounts with 

OCC to deposit Additional Margin in a 

customer segregated futures account.7

Moreover, the proposed rule change 

would not increase risk presented to 

OCC because, in the case of FCM 

clearing members that do not maintain 

proprietary accounts with OCC, all 

positions of the clearing member cleared 

by OCC would be held in the customer 

segregated futures account. 

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 (the ‘‘Act’’),8

because it would protect investors and 

the public interest by permitting 

customers of FCMs that do not maintain 

proprietary accounts at OCC with the 

ability to participate in overnight 

trading sessions. As described above, 

pursuant to the Prior Filing, FCM 

clearing members that do not maintain 

proprietary accounts with OCC would 

be required to establish a proprietary 

account in order to participate, or 

continue participating, in overnight 

trading sessions. Since these FCMs do 

not maintain proprietary accounts with 

OCC, their participation in overnight 

trading sessions is necessarily on behalf 

of their customers. OCC believes that 

these FCM clearing members may cease 

participating in overnight trading 

sessions on behalf of their customers if 

they were required to take the steps 

necessary to establish and maintain a 

proprietary account solely for the 

purposes of participating in overnight 

trading sessions for their customers. 

OCC believes that preventing this 

outcome, while still requiring the 

Additional Margin to cover potential 

increased credit risk during overnight 

trading sessions, protects investors 

engaging in overnight trading sessions 

and furthers the public interest of 

permitting FCM customers to continue 

to avail themselves of overnight trading 

sessions. As mentioned above, the 

proposed rule change does not affect the 

protections afforded by the Additional 

Margin, because the manner in which 

Additional Margin is calculated is not 

mstockstill on DSK4VPTVN1PROD with NOTICES

13938 Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices 

9 15 U.S.C. 78q–1(b)(3)(I). 10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

proposed to be changed, and OCC is not 

proposing to change any other aspect of 

its procedures governing overnight 

trading, which have previously been 

approved by the Commission. Finally, 

the proposed 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.9 The proposed 

rule change concerns operational 

changes that are designed to reduce 

OCC’s exposure to risk as a result of 

clearing member activities during 

overnight trading sessions and is 

protective in nature. This change will be 

applied uniformly across all clearing 

members participating in overnight 

trading sessions. Accordingly, 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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

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

of the Act and paragraph (f) of Rule 

19b–4 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

OCC–2015–005 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–2015–005. 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 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_

005.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–2015–005 and should 

be submitted on or before April 7, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06019 Filed 3–16–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74478; File No. SR–MIAX– 

2015–16] 

Self-Regulatory Organizations; The 

Miami International Securities 

Exchange LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fee 

Schedule 

March 11, 2015 

Pursuant to the provisions of 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 27, 2015, Miami 

International Securities Exchange LLC 

(‘‘MIAX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a 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 Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend the MIAX Options Fee Schedule. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.miaxoptions.com/filter/

wotitle/rule_filing, at MIAX’s principal 

office, and at the Commission’s Public 

Reference Room. 

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 proposes to amend its 

Fee Schedule to: (i) Increase the 

transaction fees for Public Customers 

mstockstill on DSK4VPTVN1PROD with NOTICES