Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices 22593 

11 15 U.S.C. 78s(b)(2)(C). 

12 15 U.S.C. 78q–1(b)(3)(F). 

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. 78s(b)(2). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

provisions are no longer necessary as 

they limit OCC’s ability to modify its 

By-Laws, Rules and agreements which 

may be necessary for OCC to fulfill its 

obligations as a clearing organization. 

OCC will, however, continue to be 

obligated to fulfill both the provisions of 

the Clearing Agreement and OCC’s 

regulatory responsibilities. Section 8 has 

additionally been amended to delete an 

obligation for each party to provide the 

other with proposed rule changes. The 

elimination of this contractual 

obligation reflects the parties’ 

determination that their respective 

obligations to post filed regulatory 

submissions on their public Web sites 

provides sufficient notice of such 

changes. 

• Section 11, ‘‘Financial 

Requirements for Clearing Members,’’ 

has been amended to delete a provision 

stating the specific financial 

responsibility standards OCC has with 

respect to its Clearing Members. This 

change was made to further streamline 

the Clearing Agreement given OCC’s 

general obligation to remain consistent 

with OCC By-Laws and Rules. 

• Section 14, ‘‘Programs and 

Projects,’’ has been amended to 

eliminate a provision expressly 

requiring OCC to offer futures contract 

clearing terms to NFX that are no less 

favorable to the terms offered to other 

exchanges. 

• Sections 15 and 24 in the Previous 

Agreement, ‘‘Information Sharing’’ and 

‘‘Quality Standards’’ respectively, have 

been deleted in their entirety in an 

attempt to simplify the Clearing 

Agreement as the sections create 

unnecessary obligations on the parties 

and are duplicative of general regulatory 

responsibilities of both parties. 

• Section 18(b), ‘‘Other Grounds for 

Termination,’’ has been amended to 

include a provision that OCC may 

terminate the Clearing Agreement at any 

time so long as NFX is given 120 days 

prior written notice. The addition of this 

provision better balances the rights of 

both parties to terminate the Clearing 

Agreement at their discretion provided 

that proper notice is given as required 

by the Clearing Agreement. 

• Various administrative changes 

have been made throughout the 

document including, but not limited to, 

an amended legal name and description 

of NFX, updated references to sections 

within the document, and clean-up 

changes of duplicative terms. 

Finally, pursuant to the rule change, 

as approved, Schedule A of the Clearing 

Agreement, ‘‘Description of Clearing 

and Settlement Services’’ and Schedule 

B of the Clearing Agreement, 

‘‘Information Sharing,’’ are being 

amended as follows: 

• Section (1) of Schedule A of the 

Clearing Agreement, ‘‘Trade 

Acceptance,’’ has been updated to 

reflect current OCC operational 

requirements with respect to submission 

of confirmed trades. 

• Section (4) of Schedule A, 

‘‘Information for Clearing Members,’’ 

has been amended to delete specific 

information sharing obligations of OCC 

to its Clearing Members and to state that 

the information provided to Clearing 

Members will be in accordance with 

OCC’s By-Laws and Rules. 

• Section (I)(A) of Schedule B has 

been amended to delete specific 

references to information that OCC will 

provide to Clearing Members on a daily 

basis and instead adds a provision that 

OCC will provide NFX with its ‘‘Data 

Distribution Service’’ information for 

regulatory and financial purposes. 

• Section (I)(B) of Schedule B has 

been amended to delete certain 

information sharing provisions and to 

state that the information sharing 

obligations OCC continues to have may 

be satisfied by posting the required 

information on OCC’s public Web site 

which streamlines the information 

sharing process. 

II. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act 11

directs the Commission to approve a 

proposed rule change of a selfregulatory organization if it finds that 

the proposed rule change is consistent 

with the requirements of the Act and the 

rules and regulations thereunder 

applicable to such organization. The 

Commission finds that the proposed 

rule change is consistent with Section 

17A(b)(3)(F) of the Act,12 which 

requires, among other things, that the 

rules of a clearing agency be designed to 

promote the prompt and accurate 

clearance and settlement of securities 

transactions and, to the extent 

applicable, derivative agreements, 

contracts, and transactions, to assure the 

safeguarding of securities and funds 

which are in its custody or control or for 

which it is responsible, and, in general, 

to protect investors and the public 

interest. As approved, the Clearing 

Agreement will allow derivative 

contract trades executed on NFX to be 

cleared and settled at OCC, thereby 

ensuring that these trades will be 

subject to the comprehensive 

operational and risk management 

framework at OCC. In so doing, the 

Clearing Agreement, should reduce the 

costs and risks associated with clearing 

and settling NFX trades, which should 

in turn promote the prompt and 

accurate clearance and settlement of the 

NFX derivative contract transactions, 

better assure the safeguarding of related 

securities and funds in the custody and 

control of OCC, and better protect 

investors and the public interest. 

III. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the 

Act 13 and the rules and regulations 

thereunder. 

IT IS THEREFORE ORDERED, 

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

Act,14 that the proposed rule change 

(SR–OCC–2015–03) be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–09266 Filed 4–21–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74741; File No. SR–ICEEU– 

2015–005] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of 

Designation of Longer Period for 

Commission Action on Proposed Rule 

Change Relating to CDS Procedures 

for CDX North America Index CDS 

Contracts 

April 16, 2015. 

On February 12, 2015, ICE Clear 

Europe Limited (‘‘ICEEU’’) 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 revise ICEEU’s CDS 

Procedures, CDS Risk Model 

Description and CDS End-of-Day Price 

Discovery Policy to provide the basis for 

ICEEU to clear CDX North America 

Index CDS Contracts (‘‘CDX.NA 

Contracts’’). The proposed rule change 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
22594 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices 

3Securities Exchange Act Release No. 34–74362 

(Feb. 24, 2015), 80 FR 11246 (Mar. 2, 2015). 

4 15 U.S.C. 78s(b)(2). 

5 15 U.S.C. 78s(b)(2). 

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). 

5 17 CFR 240.17d–2. 

6See Securities Exchange Act Release Nos. 70837 

(Nov. 8, 2013), 78 FR 68889 (Nov. 15, 2013) (SR– 

EDGA–2013–32) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change to Amend 

EDGA Rule 3.5 (Advertising Practices) and to 

Repeal Rule 3.20 (Initial or Partial Payments) to 

Conform with the Rules of the Financial Industry 

Regulatory Authority); and 70836 (Nov. 8, 2013), 78 

FR 68897 (Nov. 15, 2013) (SR–EDGX–2013–40) 

(Notice of Filing and Immediate Effectiveness of 

Proposed Rule Change to Amend EDGX Rule 3.5 

(Advertising Practices) and to Repeal Rule 3.20 

(Initial or Partial Payments) to Conform with the 

Rules of the Financial Industry Regulatory 

Authority). 

7 17 CFR 240.17d–2. 

8See Securities and Exchange Release No. 61698 

(March 12, 2010), 75 FR 13151 (March 18, 2010) 

(approving File No. 10–196). 

was published for comment in the 

Federal Register on March 2, 2015.3 To 

date, the Commission has not received 

comments on the proposal. 

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day from the 

publication of notice of filing of this 

proposed rule change is April 16, 2015. 

The Commission is extending this 45- 

day time period. 

ICEEU’s proposed rule change would 

revise ICEEU’s CDS Procedures, CDS 

Risk Model Description and CDS Endof-Day Price Discovery Policy to enable 

ICEEU to clear CDX.NA Contracts, as 

well as make changes to ICEEU’s CDS 

Procedures relating to iTraxx Contracts 

and single name CDS Contracts. In order 

to provide the Commission with 

sufficient time to consider the proposed 

rule change, the Commission finds it is 

appropriate to designate a longer period 

within which to take action on the 

proposed rule change. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the Act,5

designates May 31, 2015, as the date by 

which the Commission should either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–ICEEU–2015–005). 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–09270 Filed 4–21–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74740; File No. SR–BYX– 

2015–23] 

Self-Regulatory Organizations; BATS 

Y-Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Exchange 

Rule 3.5 (Advertising Practices) and 

Repeal Exchange Rule 3.20 (Initial or 

Partial Payments) 

April 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 April 1, 

2015, BATS Y-Exchange, Inc. 

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

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been 

substantially prepared by the Exchange. 

The Exchange has designated this 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(6) 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: (i) 

Amend Exchange Rule 3.5 (Advertising 

Practices); and (ii) repeal Exchange Rule 

3.20 (Initial or Partial Payments) to 

conform with the rules of the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) for purposes of an agreement 

between the Exchange and FINRA 

pursuant to Rule 17d–2 under the Act.5

The proposed rule change is identical to 

proposed rule changes submitted by the 

EDGX Exchange, Inc. (‘‘EDGX’’) and the 

EDGA Exchange, Inc. (‘‘EDGA’’) that 

were published by the Commission.6

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 

Pursuant to Rule 17d–2 under the 

Act,7 the Exchange and FINRA entered 

into an agreement to allocate regulatory 

responsibility for common rules (‘‘17d– 

2 Agreement’’). The 17d–2 Agreement 

covers common members of the 

Exchange and FINRA (‘‘Common 

Members’’) and allocates to FINRA 

regulatory responsibility, with respect to 

Common Members, for the following: (i) 

Examination of Common Members for 

compliance with federal securities laws, 

rules, and regulations, and rules of the 

Exchange that the Exchange has 

certified as identical or substantially 

similar to FINRA rules; (ii) investigation 

of Common Members for violations of 

federal securities laws, rules, and 

regulations, and Exchange rules that the 

Exchange has certified as identical or 

substantially identical to FINRA rules; 

and (iii) enforcement of compliance by 

Common Members with the federal 

securities laws, rules, and regulations, 

and the rules of the Exchange that the 

Exchange has certified as identical or 

substantially similar to FINRA rules.8

The 17d–2 Agreement included a 

certification by the Exchange that states 

that the requirements contained in 

certain Exchange rules are identical to, 

or substantially similar to, certain 


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