Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Notices 16475 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6)(iii). 

5A User is defined as ‘‘any Options member or 

Sponsored Participant who is authorized to obtain 

access to the System pursuant to Rule 11.3 

(Access).’’ See Exchange Rule 16.1(a)(63). 

6A Clearing Member is defined as ‘‘an Options 

Member that is self-clearing or an Options Member 

that clears BATS Options Transactions for other 

Members of BATS Options.’’ See Exchange Rule 

16.1(a)(15). 

7An Options Member is defined as ‘‘a firm, or 

organization that is registered with the Exchange 

pursuant to Chapter XVII of these Rules for 

purposes of participating in options trading on 

BATS Options as an ‘Options Order Entry Firm’ or 

‘Options Market Maker.’ ’’ See Exchange Rule 

16.1(a)(38). 

8A BATS Options Transactions is defined as ‘‘a 

transaction involving an options contract that is 

effected on or through BATS Options or its facilities 

or systems.’’ See Exchange Rule 16.1(a)(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– 

ICC–2015–004 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–ICC–2015–004. 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 

filings will also be available for 

inspection and copying at the principal 

office of ICE Clear Credit and on ICE 

Clear Credit’s Web site at https://

www.theice.com/clear-credit/regulation. 

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–ICC–2015–004 and should 

be submitted on or before April 17, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06992 Filed 3–26–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74565; File No. SR–BATS– 

2015–22] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Adopt New Rule 21.17, 

Exchange Sharing of User Designated 

Risk Settings 

March 23, 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 March 13, 

2015, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it effective 

upon filing with the Commission. 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 filed a proposal to 

authorize the BATS Options Market 

(‘‘BATS Options’’) to share a User’s 5

risk settings with the Clearing Member 6

that clears transactions on behalf of the 

User. 

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 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to adopt 

new Rule 21.17, Exchange Sharing of 

User Designated Risk Settings, in order 

to authorize the Exchange to share any 

of a User’s risk settings with the 

Clearing Member that clears 

transactions on behalf of the User. 

Under BATS Rule 17.2(b), Options 

Members 7 must be Clearing Members or 

establish a clearing arrangement with a 

Clearing Member. Rule 21.13(a) 

provides that every Clearing Member is 

responsible for the clearance of BATS 

Options Transactions 8 of such Clearing 

Member and of each User that gives up 

such Clearing Member’s name pursuant 

to a letter of authorization, letter of 

guarantee, or other authorization given 

by such Clearing Member to such User, 

which authorization must be submitted 

to the Exchange. Further, no Options 

Member may make any transactions on 

the Exchange unless a letter of guarantee 

providing that the issuing Clearing 

Member accepts financial 

responsibilities for all BATS Options 

Transactions made by the Options 

Member (a ‘‘Letter of Guarantee’’) has 

been issued for such Options Member 

by a Clearing Member and filed with the 

Exchange. 

Thus, while not all Options Members 

are Clearing Members, all Options 

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16476 Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Notices 

9A Sponsored Participant is defined as ‘‘a person 

which has entered into a sponsorship arrangement 

with a Sponsoring Member pursuant to Rule 11.3. 

See Exchange Rule 1.5(x). 

10A Sponsoring Member is defined as ‘‘a brokerdealer that has been issued a membership by the 

Exchange who has been designated by a Sponsored 

Participant to execute, clear and settle transactions 

resulting from the System. The Sponsoring Member 

shall be either (i) a clearing firm with membership 

in a clearing agency registered with the Commission 

that maintains facilities through which transactions 

may be cleared or (ii) a correspondent firm with a 

clearing arrangement with any such clearing firm.’’ 

See Exchange Rule 1.5(y). 

11See Exchange Rule 21.16. 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

14Trading System is defined as ‘‘the automated 

trading system used by BATS Options for the 

trading of options contracts.’’ See Exchange Rule 

16.1(a)(59). 

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

16 17 CFR 240.19b–4(f)(6). 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

19 17 CFR 240.19b–4(f)(6). 

20 17 CFR 240.19b–4(f)(6)(iii). 

Members require a Clearing Member’s 

consent to clear transactions on their 

behalf (or on behalf of any Sponsored 

Participants 9 for which the Options 

Member is a Sponsoring Member 10) in 

order to conduct business on the 

Exchange. Each Options Member that 

transacts through a Clearing Member on 

the Exchange executes a Letter of 

Guarantee which codifies the 

relationship between the Options 

Member and the Clearing Member and 

provides the Exchange with notice of 

which Clearing Members have 

relationships with which Options 

Members. The Clearing Member that 

guarantees the Options Member’s 

transactions on the Exchange has a 

financial interest in understanding the 

risk tolerance of the Options Member. 

The proposal would provide the 

Exchange with authority to directly 

provide Clearing Members with 

information that may otherwise be 

available to such Clearing Members by 

virtue of their relationship with the 

respective Users. 

At this time, the risk settings covered 

by this proposal are set forth in Rule 

21.16, entitled Risk Monitor 

Mechanism.11 The Exchange may adopt 

additional rules providing for Options 

Member designated risk settings other 

than those provided in Rule 21.16 that 

could be shared with an Options 

Member’s Clearing Member under the 

proposal and the Exchange would 

announce these additional risk settings 

by issuing a Trade Desk Notice. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with the 

requirements of the Act and the rules 

and regulations thereunder that are 

applicable to a national securities 

exchange, and, in particular, with the 

requirements of section 6(b) of the 

Act.12 In particular, the proposal is 

consistent with section 6(b)(5) of the 

Act 13 because it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

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. 

The proposed rule change will allow 

the Exchange to directly provide an 

Options Member’s designated risk 

settings to the Clearing Member that 

clears trades on behalf of the Options 

Member. Because a Clearing Member 

that executes a clearing Letter of 

Guarantee on behalf of an Options 

Member guarantees all transactions of 

that Options Member, and therefore 

bears the risk associated with those 

transactions, it is appropriate for the 

Clearing Member to have knowledge of 

what risk settings the Options Member 

may utilize within the Trading 

System.14 The proposal will permit 

Clearing Members who have a financial 

interest in the risk settings of Options 

Members with whom the Clearing 

Participant has entered into a Letter of 

Guarantee to better monitor and manage 

the potential risks assumed by Clearing 

Members, thereby providing Clearing 

Members with greater control and 

flexibility over setting their own risk 

tolerance and exposure and aiding 

Clearing Members in complying with 

the Act. To the extent a Clearing 

Member might reasonably require an 

Options Member to provide access to its 

risk setting as a prerequisite to 

continuing to clear trades on the 

Options Member’s behalf, the 

Exchange’s proposal to share those risk 

settings directly reduces the 

administrative burden on Options 

Members and ensures that Clearing 

Members are receiving information that 

is up to date and conforms to the 

settings active in the Trading System. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not designed to 

address any competitive issues and does 

not pose an undue burden on nonClearing Members because, unlike 

Clearing Members, non-Clearing 

Members do not guarantee the execution 

of an Options Member’s transactions on 

the Exchange. The proposal is 

structured to offer the same 

enhancement to all Clearing Members, 

regardless of size, and would not 

impose a competitive burden on any 

Options Member. Any Options Member 

that does not wish to share its 

designated risk settings with its Clearing 

Member could avoid sharing such 

settings by becoming a Clearing 

Member. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any written 

comments from members or other 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has been 

filed by the Exchange as a ‘‘noncontroversial’’ rule change pursuant to 

section 19(b)(3)(A)(i) of the Act 15 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.16 Consequently, 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 17 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.18

A proposed rule change filed under 

Rule 19b–4(f)(6) 19 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),20 the 

Commission may 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 so the Exchange may 

allow Clearing Members to immediately 

monitor and manage the potential risks 

assumed by Options Members. The 

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Federal Register / Vol. 80, No. 59 / Friday, March 27, 2015 / Notices 16477 

21For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

22 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4A Managed Fund Share is a security that 

represents an interest in an investment company 

registered under the Investment Company Act of 

1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as 

an open-end investment company or similar entity 

that invests in a portfolio of securities selected by 

its investment adviser consistent with its 

investment objectives and policies. In contrast, an 

open-end investment company that issues 

Investment Company Units, listed and traded on 

the Exchange under NYSE Arca Equities Rule 

5.2(j)(3), seeks to provide investment results that 

correspond generally to the price and yield 

performance of a specific foreign or domestic stock 

index, fixed income securities index or combination 

thereof. 

5The Commission has previously approved 

listing and trading on the Exchange of actively 

managed funds under Rule 8.600. See, e.g., 

Securities Exchange Act Release Nos. 57801 (May 

8, 2008), 73 FR 27878 (May 14, 2008) (SR– 

NYSEArca–2008–31) (order approving Exchange 

listing and trading of twelve actively-managed 

funds of the WisdomTree Trust); 66321 (February 

3, 2012), 77 FR 6850 (February 9, 2012) (SR– 

NYSEArca–2011–95) (order approving listing and 

trading of PIMCO Total Return Exchange Traded 

Fund); 66670 (March 28, 2012), 77 FR 20087 (April 

3, 2012) (SR–NYSEArca–2012–09) (order approving 

Continued 

Exchange notes that this functionality is 

already available on other exchanges. 

The Commission believes that waiving 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest because it will allow the 

Exchange’s Clearing Members to 

monitor and manage potential risks in a 

timely manner. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change to be operative 

upon filing with the Commission.21

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (1) Necessary or appropriate in 

the public interest; (2) for the protection 

of investors; or (3) 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 proposal 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– 

BATS–2015–22 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–BATS–2015–22. 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 will also 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–BATS– 

2015–22 and should be submitted on or 

before April 17, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06994 Filed 3–26–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74562; File No. SR– 

NYSEArca–2015–15] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Relating to Listing and 

Trading of Shares of Principal EDGE 

Active Income ETF Under NYSE Arca 

Equities Rule 8.600 

March 23, 2015. 

Pursuant to section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on March 

12, 2015, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. 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 proposes to list and 

trade shares of the following under 

NYSE Arca Equities Rule 8.600 

(‘‘Managed Fund Shares’’): Principal 

EDGE Active Income ETF. The text of 

the proposed rule change is available on 

the Exchange’s Web site at 

www.nyse.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 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization 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 those 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 

The Exchange proposes to list and 

trade shares (‘‘Shares’’) of the following 

under NYSE Arca Equities Rule 8.600, 

which governs the listing and trading of 

Managed Fund Shares 4 on the 

Exchange: 5 Principal EDGE Active 

Income ETF (the ‘‘Fund’’). 

mstockstill on DSK4VPTVN1PROD with NOTICES