20032 Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 74430 

(March 4, 2015), 80 FR 12675 (‘‘Notice’’). 

4Amendment No. 1 corrects the customer 

portfolio margin description in the Exhibit 3 to 

conform it to Exchange Rule 12.4. As the stated in 

the Notice, the MSCI EAFE and MSCI EM Index 

options would be subject to the same rules that 

currently govern other CBOE index options, 

including margin requirements. Amendment No. 1 

is not subject to notice and comment because it is 

technical in nature and does not materially alter the 

substance of the proposed rule change or raise any 

novel regulatory issues. 

document. The amendment documents 

for COLs NPF–93 and NPF–94 are 

available in ADAMS under Accession 

Nos. ML14351A419 and ML14351A424, 

respectively. A summary of the 

amendment documents is provided in 

Section III of this document. 

II. Exemption 

Reproduced below is the exemption 

document issued to VCSNS, Units 2 and 

3. It makes reference to the combined 

safety evaluation that provides the 

reasoning for the findings made by the 

NRC (and listed under Item 1) in order 

to grant the exemption: 

1. In a letter dated May 20, 2014, and 

supplemented by the letters dated June 

3, November 6, and November 14, 2014, 

South Carolina Electric & Gas Company 

(licensee) requested from the Nuclear 

Regulatory Commission (Commission) 

an exemption to allow departures from 

Tier 1 information in the certified 

Design Control Document (DCD) 

incorporated by reference in 10 CFR 

part 52, appendix D, ‘‘Design 

Certification Rule for the AP1000 

Design,’’ as part of license amendment 

request (LAR) 13–42, ‘‘Tier 1 Editorial 

and Consistency Changes.’’ 

For the reasons set forth in Section 3.1 

of the NRC staff’s Safety Evaluation, 

which can be found in ADAMS under 

Accession No. ML14345B029, the 

Commission finds that: 

A. The exemption is authorized by 

law; 

B. the exemption presents no undue 

risk to public health and safety; 

C. the exemption is consistent with 

the common defense and security; 

D. special circumstances are present 

in that the application of the rule in this 

circumstance is not necessary to serve 

the underlying purpose of the rule; 

E. the special circumstances outweigh 

any decrease in safety that may result 

from the reduction in standardization 

caused by the exemption; and 

F. the exemption will not result in a 

significant decrease in the level of safety 

otherwise provided by the design. 

2. Accordingly, the licensee is granted 

an exemption from the certified DCD 

Tier 1 Figures 2.2.4–1, 3.3–1 through 10, 

3.3–11A, 3.3–11B, and 3.3–12 through 

14; Tables 2.2.2–3, 2.2.3–4, 2.2.3–6, 

2.2.4–1, 2.2.4–4, 2.2.5–5, 2.3.2–2, 2.3.6– 

1, 2.3.6–4, 2.3.10–1, 2.3.10–4, 2.3.14–2, 

2.6.3–3, 2.6.3–4, 3.3–1, 3.3–6, 2.1.3–4, 

2.5.1–2 and 3.7–2; and Sections 2.6.3 

and 3.3, as described in the licensee’s 

request dated May 20, 2014, and 

supplemented on June 3, November 6, 

and November 14, 2014. This exemption 

is related to, and necessary for the 

granting of License Amendment No. 23, 

which is being issued concurrently with 

this exemption. 

3. As explained in Section 5.0 of the 

NRC staff’s Safety Evaluation (ADAMS 

Accession Number ML14345B029), this 

exemption meets the eligibility criteria 

for categorical exclusion set forth in 10 

CFR 51.22(c)(9). Therefore, pursuant to 

10 CFR 51.22(b), no environmental 

impact statement or environmental 

assessment needs to be prepared in 

connection with the issuance of the 

exemption. 

4. This exemption is effective as of the 

date of its issuance. 

III. License Amendment Request 

The request for the amendment and 

exemption was submitted by the letter 

dated May 20, 2014. The licensee 

supplemented this request by letter 

dated June 3, 2014. The proposed 

amendment is described in Section I, 

above. 

The Commission has determined for 

these amendments that the application 

complies with the standards and 

requirements of the Atomic Energy Act 

of 1954, as amended (the Act), and the 

Commission’s rules and regulations. 

The Commission has made appropriate 

findings as required by the Act and the 

Commission’s rules and regulations in 

10 CFR Chapter I, which are set forth in 

the license amendment. 

A notice of consideration of issuance 

of amendment to facility operating 

license or combined license, as 

applicable, proposed no significant 

hazards consideration determination, 

and opportunity for a hearing in 

connection with these actions, was 

published in the Federal Register on 

September 2, 2014 (79 FR 52059). The 

June 3, 2014 supplement had no effect 

on the no significant hazards 

consideration determination, and no 

comments were received during the 60- 

day comment period. 

The Commission has determined that 

these amendments satisfy the criteria for 

categorical exclusion in accordance 

with 10 CFR 51.22(c)(9). Therefore, 

pursuant to 10 CFR 51.22(b), no 

environmental impact statement or 

environmental assessment need be 

prepared for these amendments. 

IV. Conclusion 

Using the reasons set forth in the 

combined safety evaluation, the staff 

granted the exemption and issued the 

amendment that the licensee requested 

on May 20, 2014, and supplemented by 

letter dated June 3, 2014. The exemption 

and amendment were issued on March 

10, 2015, as part of a combined package 

to the licensee (ADAMS Accession No. 

ML14345B023). 

Dated at Rockville, Maryland, this 7th day 

of April 2015. 

For the Nuclear Regulatory Commission. 

Chandu P. Patel, 

Acting Chief, Licensing Branch 4, Division 

of New Reactor Licensing, Office of New 

Reactors. 

[FR Doc. 2015–08563 Filed 4–13–15; 8:45 am] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74681; File No. SR–CBOE– 

2015–023] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Granting 

Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1, to List and Trade 

Options on the MSCI EAFE Index and 

on the MSCI Emerging Markets Index 

April 8, 2015. 

I. Introduction 

On February 26, 2015, the Chicago 

Board Options Exchange, Incorporated 

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

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

list and trade options on the MSCI EAFE 

Index and the MSCI Emerging Markets 

(‘‘EM’’) Index. The proposed rule 

change was published for comment in 

the Federal Register on March 10, 

2015.3 On March 24, 2015, the Exchange 

filed Amendment No. 1 to the proposed 

rule change.4 The Commission received 

no comments on the proposed rule 

change. This order grants approval of 

the proposed rule change, as modified 

by Amendment No. 1, on an accelerated 

basis. 

II. Description of the Proposed Rule 

Change 

The Exchange proposes to list and 

trade P.M. cash-settled, European-style 


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Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 20033 

5The Exchange proposes to list up to twelve nearterm expiration months for the MSCI EAFE and 

MSCI EM Index options. The Exchange also 

proposes to list LEAPS on the MSCI EAFE Index 

and the MSCI EM Index. The exchange proposes 

that options on the MSCI EAFE Index and the MSCI 

EM Index would be eligible for all other expirations 

permitted for other broad-based indexes (e.g., End 

of Week/End of Month Expirations, Short Term 

Option Series, and Quarterly Options Series). In 

addition, the Exchange proposes to designate the 

MSCI EAFE Index and the MSCI EM Index as 

eligible for trading as FLEX options. 

6The Exchange states that the MSCI EAFE Index 

and the MSCI EM Index each meet the definition 

of a broad-based index as set forth in Exchange Rule 

24.1(i)(1). 

7The Exchange proposes to designate MSCI as the 

reporting authority for the MSCI EAFE Index and 

the MSCI EM Index. 

8Specifically, the indexes are based on the MSCI 

Global Investable Market Indexes Methodology. 

Further detail regarding this methodology can be 

found in the Notice, supra note 3, at notes 5 and 

9 and accompanying text. 

9According to the Exchange, when the last 

trading day/expiration date is moved because of an 

Exchange holiday or closure, the last trading day/ 

expiration date for expiring options would be the 

immediately preceding business day. 

10According to the Exchange, if the exercise 

settlement value is not available or the normal 

settlement procedure cannot be utilized due to a 

trading disruption or other unusual circumstance, 

the settlement value would be determined in 

accordance with the rules and bylaws of the 

Options Clearing Corporation. 

options on the MSCI EAFE Index and 

the MSCI EM Index.5 According to the 

Exchange, the MSCI EAFE Index is a 

free floated-adjusted market 

capitalization index that is designed to 

measure the equity market performance 

of developed markets, excluding the 

U.S. and Canada. The MSCI EAFE Index 

consists of 21 developed market country 

indexes and has over 900 constituents. 

According to the Exchange, the MSCI 

EM Index is a free float-adjusted market 

capitalization index that is designed to 

measure the equity market performance 

of emerging markets. The MSCI EM 

Index consists of 23 emerging market 

country indexes and has over 800 

constituents.6 The Exchange states that 

the indexes are monitored and 

maintained by MSCI Inc. (‘‘MSCI’’).7

Adjustments to the indexes are made on 

a daily basis, and MSCI reviews the 

indexes quarterly. 

According to the Exchange, both the 

MSCI EAFE Index and the MSCI EM 

Index are calculated in U.S. dollars on 

a real-time basis from the open of the 

first market on which the components 

are traded to the closing of the last 

market on which the components are 

traded. The methodologies used to 

calculate the MSCI EAFE Index and the 

MSCI EM Index are similar to the 

methodology used to calculate the value 

of other benchmark marketcapitalization weighted indexes.8 Realtime data is distributed approximately 

every 15 seconds while the indexes are 

being calculated using MSCI’s real-time 

calculation engine to Bloomberg L.P. 

(‘‘Bloomberg’’), FactSet Research 

Systems, Inc. (‘‘FactSet’’), and Thomson 

Reuters (‘‘Reuters’’). End of day data is 

distributed daily to clients through 

MSCI as well as through major 

quotation vendors, including 

Bloomberg, FactSet, and Reuters. 

The Exchange proposes that trading 

hours for MSCI EAFE Index options 

would be from 8:30 a.m. (Chicago Time) 

to 3:15 p.m. (Chicago Time), except that 

trading in expiring MSCI EAFE Index 

options would end at 10:00 a.m. 

(Chicago Time) on their expiration date. 

Trading hours for MSCI EM Index 

options would be from 8:30 a.m. 

(Chicago Time) to 3:15 p.m. (Chicago 

Time). 

The Exchange proposes that MSCI 

EAFE and MSCI EM Index options 

would expire on the third Friday of the 

expiration month.9 The exercise 

settlement value would be the official 

closing values of the MSCI EAFE Index 

and the MSCI EM Index as reported by 

MSCI on the last trading day of the 

expiring contract. The exercise 

settlement amount would be equal to 

the difference between the exercisesettlement value and the exercise price 

of the option, multiplied by the contract 

multiplier ($100).10 Exercise would 

result in delivery of cash on the 

business day following expiration. 

The Exchange proposes to create 

specific initial and maintenance listing 

criteria for options on the MSCI EAFE 

Index and the MSCI EM Index. 

Specifically, the Exchange proposes to 

add new Interpretation and Policy .01(a) 

to Rule 24.2 to provide that the 

Exchange may trade MSCI EAFE and 

MSCI EM Index options if each of the 

following conditions is satisfied: (1) The 

index is broad-based, as defined in 

Exchange Rule 24.1(i)(1); (2) options on 

the index are designated as P.M.-settled 

index options; (3) the index is 

capitalization-weighted, price-weighted, 

modified capitalization-weighted, or 

equal dollar-weighted; (4) the index 

consists of 500 or more component 

securities; (5) all of the component 

securities of the index will have a 

market capitalization of greater than 

$100 million; (6) no single component 

security accounts for more than fifteen 

percent (15%) of the weight of the 

index, and the five highest weighted 

component securities in the index do 

not, in the aggregate, account for more 

than fifty percent (50%) of the weight of 

the index; (7) non-U.S. component 

securities (stocks or ADRs) that are not 

subject to comprehensive surveillance 

agreements do not, in the aggregate, 

represent more than: (i) Twenty percent 

(20%) of the weight of the MSCI EAFE 

Index, and (ii) twenty-two and a half 

percent (22.5%) of the weight of the 

MSCI EM Index; (8) during the time 

options on the index are traded on the 

Exchange, the current index value is 

widely disseminated at least once every 

fifteen (15) seconds by one or more 

major market data vendors; however, 

the Exchange may continue to trade 

MSCI EAFE Index options after trading 

in all component securities has closed 

for the day and the index level is no 

longer widely disseminated at least once 

every fifteen (15) seconds by one or 

more major market data vendors, 

provided that EAFE futures contracts 

are trading and prices for those 

contracts may be used as a proxy for the 

current index value; (9) the Exchange 

reasonably believes it has adequate 

system capacity to support the trading 

of options on the index, based on a 

calculation of the Exchange’s current 

Independent System Capacity Advisor 

(ISCA) allocation and the number of 

new messages per second expected to be 

generated by options on such index; and 

(10) the Exchange has written 

surveillance procedures in place with 

respect to surveillance of trading of 

options on the index. 

Additionally, the Exchange proposes 

to add new Interpretation and Policy 

.01(b) to Rule 24.2 to set forth the 

following maintenance listing standards 

for options on the MSCI EAFE Index 

and the MSCI EM Index: (1) The 

conditions set forth in subparagraphs 

.01(a)(1), (2), (3), (4), (7), (8), (9), and 

(10) must continue to be satisfied, the 

conditions set forth in subparagraphs 

.01(a)(5) and (6) must be satisfied only 

as of the first day of January and July in 

each year; and (2) the total number of 

component securities in the index may 

not increase or decrease by more than 

thirty-five percent (35%) from the 

number of component securities in the 

index at the time of its initial listing. In 

the event a class of index options listed 

on the Exchange pursuant to 

Interpretation and Policy .01(a) fails to 

satisfy these maintenance listing 

standards, the Exchange shall not open 

for trading any additional series of 

options of that class unless the 

continued listing of that class of index 

options has been approved by the 

Commission under Section 19(b)(2) of 

the Act. 

The contract multiplier for the MSCI 

EAFE and MSCI EM Index options 

would be $100. The Exchange proposes 

that the minimum tick size for series 


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20034 Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 

11The Exchange states that MSCI EAFE and MSCI 

EM Index options would be margined as broadbased index options. 

12See, e.g., Exchange Rule Chapters IX (Doing 

Business with the Public), XII (Margins), IV 

(Business Conduct), VI (Doing Business on the 

Trading Floor), VIII (Market-Makers, Trading 

Crowds and Modified Trading Systems), and XXIV 

(Index Options). 

13 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

14 15 U.S.C. 78f(b)(5). 

15The Commission notes that it previously 

approved the listing and trading of options on the 

MSCI EAFE Index and the MSCI EM Index on 

NASDAQ OMX PHLX LLC (‘‘Phlx’’). See Securities 

Exchange Act Release Nos. 66420 (February 17, 

2012), 77 FR 11177 (February 24, 2012) (SR–Phlx– 

2011–179) (order approving the listing of MSCI EM 

Index options on Phlx) and 66861 (April 26, 2012), 

77 FR 26056 (May 2, 2012) (SR–Phlx–2012–28) 

(order approving the listing of MSCI EAFE Index 

options on Phlx). See also Securities Exchange Act 

Release No. 67071 (May 29, 2012), 77 FR 33013 

(June 4, 2012) (SR–Phlx–2012–67) (notice of filing 

and immediate effectiveness of proposed rule 

change to amend the trading hours for MSCI EAFE 

Index options). The Exchange states that its 

proposal is substantially similar to the Phlx 

proposals that were approved by the Commission. 

trading below $3 would be 0.05 ($5.00), 

and above $3 would be 0.10 ($10.00). 

The Exchange also proposes that the 

strike price interval for MSCI EAFE and 

MSCI EM Index options would be no 

less than $5, except that the strike price 

interval would be no less than $2.50 if 

the strike price is less than $200. 

The Exchange proposes to apply the 

default position limits for broad-based 

index options of 25,000 contracts on the 

same side of the market (and 15,000 

contracts near-term limit) to MSCI EAFE 

and MSCI EM Index options. All 

position limit hedge exemptions would 

apply. The exercise limits for MSCI 

EAFE and MSCI EM Index options 

would be equivalent to the position 

limits for those options. In addition, the 

Exchange proposes that the position 

limits for FLEX options on the MSCI 

EAFE Index and the MSCI EM Index 

would be equal to the position limits for 

non-FLEX options on the MSCI EAFE 

Index and the MSCI EM Index. The 

exercise limits for FLEX options on the 

MSCI EAFE Index and the MSCI EM 

Index would be equivalent to the 

position limits for those options. 

The Exchange states that, except as 

modified by the proposal, Exchange 

Rules in Chapters I through XIX, XXIV, 

XXIVA, and XXIVB would equally 

apply to MSCI EAFE and MSCI EM 

Index options. The Exchange also states 

that MSCI EAFE and MSCI EM Index 

options would be subject to the same 

rules that currently govern other CBOE 

index options, including sales practice 

rules, margin requirements,11 and 

trading rules.12

The Exchange represents that it has an 

adequate surveillance program in place 

for MSCI EAFE and MSCI EM Index 

options and intends to use the same 

surveillance procedures currently 

utilized for each of the Exchange’s other 

index options to monitor trading in the 

proposed options. The Exchange also 

states that it is a member of the 

Intermarket Surveillance Group, is an 

affiliate member of the International 

Organization of Securities Commissions, 

and has entered into various 

comprehensive surveillance agreements 

and/or Memoranda of Understanding 

with various stock exchanges. Finally, 

the Exchange represents that it believes 

it and the Options Price Reporting 

Authority (‘‘OPRA’’) have the necessary 

systems capacity to handle the 

additional traffic associated with the 

listing of new series that would result 

from the introduction of MSCI EAFE 

and MSCI EM Index options. 

III. Discussion and Commission 

Findings 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.13 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,14 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, 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 Commission believes that the 

listing and trading of MSCI EAFE Index 

options will broaden trading and 

hedging opportunities for investors by 

providing an options instrument based 

on an index designed to measure the 

equity market performance of developed 

markets (excluding the U.S. and 

Canada). Similarly, the Commission 

believes that the listing and trading of 

MSCI EM Index options will broaden 

trading and hedging opportunities for 

investors by providing an options 

instrument based on an index designed 

to measure the equity market 

performance of emerging markets. 

Moreover, the Exchange states that the 

iShares MSCI EAFE exchange traded 

fund (‘‘EFA’’) is an actively-traded 

product and that it lists actively-traded 

options overlying EFA. The Exchange 

likewise states that the iShares MSCI 

Emerging Markets exchange traded fund 

(‘‘EEM’’) is an actively-traded product 

and that it lists actively-traded options 

overlying EEM. 

Because the MSCI EAFE Index and 

the MSCI EM Index are broad-based 

indexes composed of actively-traded, 

well-capitalized stocks, the trading of 

options on these indexes does not raise 

unique regulatory concerns. The 

Commission believes that the listing 

standards, which are created 

specifically and exclusively for these 

indexes, are consistent with the Act, for 

the reasons discussed below.15

The Commission notes that proposed 

Interpretation and Policy .01 to 

Exchange Rule 24.2 would require that 

the MSCI EAFE Index and the MSCI EM 

Index each consist of 500 or more 

component securities. Further, for 

options on the MSCI EAFE Index and 

the MSCI EM Index to trade, each of the 

minimum of 500 component securities 

would need to have a market 

capitalization of greater than $100 

million. The Commission notes that, 

according to the Exchange, the MSCI 

EAFE Index has more than 900 

components and the MSCI EM Index 

has more than 800 components, all of 

which must meet the market 

capitalization requirement to permit 

options on these indexes to begin 

trading. 

The Commission notes that the 

proposed listing standards for options 

on the MSCI EAFE Index and the MSCI 

EM Index would not permit any single 

component security to account for more 

than 15% of the weight of the index, 

and would not permit the five highest 

weighted component securities to 

account for more than 50% of the 

weight of the index in the aggregate. The 

Commission believes that, in view of the 

requirement on the number of securities 

in each index, the number of countries 

represented in each index, and the 

market capitalization, this concentration 

standard is consistent with the Act. 

Further, the Exchange states that no 

single component accounts for more 

than 5% of either index. As noted 

above, the Exchange represents that it 

has an adequate surveillance program in 

place for MSCI EAFE and MSCI EM 

Index options and intends to use the 

same surveillance procedures currently 

utilized for each of the Exchange’s other 

index options to monitor trading in the 

proposed options. 

The Commission notes that, 

consistent with the Exchange’s generic 

listing standards for broad-based index 

options, non-U.S. component securities 


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Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 20035 

16The Exchange notes that, because trading in the 

components of the MSCI EAFE Index ends at 

approximately 11:30 a.m. (Chicago Time), there will 

not be a current MSCI EAFE Index level calculated 

and disseminated during a portion of the time when 

MSCI EAFE Index options would be traded (from 

approximately 11:30 a.m. (Chicago Time) to 3:15 

p.m. (Chicago Time)). However, the Exchange states 

that EAFE futures contracts will be trading during 

this time period and that the futures prices would 

be a proxy for the current MSCI EAFE Index level 

during this time period. The Exchange states that 

MSCI EAFE Mini Index futures contracts are listed 

for trading on the Intercontinental Exchange, Inc. 

(‘‘ICE’’) and other derivatives contracts on the MSCI 

EAFE Index are listed for trading in Europe. 

Similarly, the Exchange states that MSCI Emerging 

Markets Mini Index futures contracts are listed for 

trading on ICE and other derivatives contracts on 

the MSCI EM Index are listed for trading in Europe. 

17 15 U.S.C. 78f(b)(1). 

18 15 U.S.C. 78s(b)(2). 

19See supra note 15. 

20 15 U.S.C. 78s(b)(2). 

21 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

of the MSCI EAFE Index that are not 

subject to comprehensive surveillance 

agreements will not, in the aggregate, 

represent more than 20% of the weight 

of the index. With respect to the MSCI 

EM Index, non-U.S. component 

securities that are not subject to 

comprehensive surveillance agreements 

must not, in the aggregate, represent 

more than 22.5% of the weight of the 

index. 

The proposed listing standards 

require that, during the time options on 

the MSCI EAFE Index and the MSCI EM 

Index are traded on the Exchange, the 

current index value is widely 

disseminated at least once every 15 

seconds by one or more major market 

data vendors. However, the Exchange 

may continue to trade MSCI EAFE Index 

options after trading in all component 

securities has closed for the day and the 

index level is no longer widely 

disseminated at least once every 15 

seconds by one or more major market 

data vendors, provided that EAFE 

futures contracts are trading and prices 

for those contracts may be used as a 

proxy for the current index value.16

In addition, the proposed listing 

standards require the Exchange to 

reasonably believe that it has adequate 

system capacity to support the trading 

of options on the MSCI EAFE Index and 

the MSCI EM Index. As noted above, the 

Exchange represents that it believes it 

and the OPRA have the necessary 

systems capacity to handle the 

additional traffic associated with the 

listing of new series that would result 

from the introduction of MSCI EAFE 

and MSCI EM Index options. 

As a national securities exchange, the 

Exchange is required, under Section 

6(b)(1) of the Act,17 to enforce 

compliance by its members, and persons 

associated with its members, with the 

provisions of the Act, Commission rules 

and regulations thereunder, and its own 

rules. As noted above, the Exchange 

states that, except as modified by the 

proposal, Exchange Rules in Chapters I 

through XIX, XXIV, XXIVA, and XXIVB 

would equally apply to MSCI EAFE and 

MSCI EM Index options. The Exchange 

also states that MSCI EAFE and MSCI 

EM Index options would be subject to 

the same rules that currently govern 

other CBOE index options, including 

sales practice rules, margin 

requirements, and trading rules. 

The Commission further believes that 

the Exchange’s proposed position and 

exercise limits, trading hours, margin, 

strike price intervals, minimum tick 

size, series openings, and other aspects 

of the proposed rule change are 

appropriate and consistent with the Act. 

IV. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1 

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the 

Act,18 for approving the proposed rule 

change, as modified by Amendment No. 

1, prior to the 30th day after the date of 

publication of notice in the Federal 

Register. As noted above, the 

Commission previously approved the 

listing and trading of options on the 

MSCI EAFE Index and the MSCI EM 

Index on another exchange,19 and the 

current proposal is substantially similar 

to the rules that were approved by the 

Commission. The prior proposals and 

the current proposal were each subject 

to a full 21-day comment period and no 

comments were received on any of the 

proposals. 

The Exchange requested that the 

Commission accelerate approval of the 

proposal. The Exchange believes that 

accelerated approval by the Commission 

would enable these options to be 

brought to market sooner, which would 

broaden trading and hedging 

opportunities for investors by creating 

new options on indexes that are 

demonstrably popular. 

The Commission finds that good 

cause exists to approve the proposal, as 

modified by Amendment No. 1, on an 

accelerated basis. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,20 that the 

proposed rule change (SR–CBOE–2015– 

023), as modified by Amendment No. 1, 

be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08453 Filed 4–13–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74680; File No. SR– 

NASDAQ–2015–029] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

NASDAQ Rule 7051 Fees Relating to 

Pricing for Direct Circuit Connections 

April 8, 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 26, 

2015, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

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

the proposed rule change as described 

in Items I and II 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 

NASDAQ is proposing to amend Rule 

7051 to increase installation and 

monthly fees assessed for Direct Circuit 

Connection to NASDAQ, and to waive 

certain installation fees thereunder for a 

limited time. The exchange will 

implement the proposed changes on 

April 1, 2015. 

The text of the proposed rule change 

is available at http://

nasdaq.cchwallstreet.com at NASDAQ’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, 

NASDAQ 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 


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