62500 Federal Register / Vol. 79, No. 201 / Friday, October 17, 2014 / Notices 

29 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4See Securities Exchange Act Release No. 71341 

(January 17, 2014), 79 FR 4213 (January 24, 2014) 

(Order Approving SR–FINRA–2013–042). On April 

3, 2014, FINRA filed with the Commission for 

immediate effectiveness a proposed rule change to 

amend Rules 6160, 6170, 6480, and 6720 to permit 

an ATS that trades both TRACE-Eligible Securities 

and equity securities (OTC Equity Securities or 

NMS stocks) to use two MPIDs, rather than a single 

unique MPID, if each MPID is used exclusively for 

either TRACE-Eligible Securities or equity 

securities. See Securities Exchange Act Release No. 

71911 (April 9, 2014), 79 FR 21316 (April 15, 2014). 

5See Regulatory Notice 14–07 (February 2014). 

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 

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 such 

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 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– 

NYSEArca–2014–114 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–NYSEArca–2014–114. 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 the filing also 

will 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– 

NYSEArca–2014–114 and should be 

submitted on or November 7, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24683 Filed 10–16–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73340; File No. SR–FINRA– 

2014–042] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating to the 

Implementation Date of Market 

Participant Identifier Requirements for 

Alternative Trading Systems 

October 10, 2014. 

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 October 

2, 2014, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by 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 

FINRA is proposing to postpone until 

February 2, 2015, the implementation 

date of the requirement that alternative 

trading systems (‘‘ATSs’’) use unique 

market participant identifiers (‘‘MPIDs’’) 

when reporting order and trade 

information to FINRA. 

The proposed rule change does not 

make any changes to the text of FINRA 

rules. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FINRA 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. FINRA 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, Proposed Rule 

Change 

1. Purpose 

On January 17, 2014, the Commission 

approved SR–FINRA–2013–042, a 

proposed rule change to (i) adopt Rule 

4552 to require ATSs to report to FINRA 

weekly volume information and number 

of trades regarding securities 

transactions within the ATS; and (ii) 

amend Rules 6160, 6170, 6480, and 

6720 to require each ATS to acquire and 

use a single, unique MPID when 

reporting information to FINRA.4 Rule 

4552 was implemented on May 12, 

2014, and the MPID requirement for 

ATSs is currently scheduled to be 

implemented on November 10, 2014.5

The proposed rule change postpones the 

implementation date for ATSs to 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 201 / Friday, October 17, 2014 / Notices 62501 

6Securities Exchange Act Release No. 70676 

(October 11, 2013), 78 FR 62862, 62856 (October 22, 

2013) (Notice of Filing of SR–FINRA–2013–042). 

7Letter from Brant K. Brown, Associate General 

Counsel, FINRA, to Elizabeth Murphy, Secretary, 

SEC, dated January 15, 2014, at 7. 

8FINRA has created a page on its Web site 

dedicated to the new ATS requirements, including 

a link to the ATS data reported pursuant to Rule 

4552. See www.finra.org/ats. 

9See www.finra.org/Industry/Compliance/Market

Transparency/ATS/FAQ/. 10 15 U.S.C. 78o–3(b)(6). 

11 15 U.S.C. 78s(b)(3)(A). 

12 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 along with a brief 

description and text of 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. 

13For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

comply with the new MPID requirement 

until February 2, 2015. 

At the time FINRA filed SR–FINRA– 

2013–042, FINRA recognized that 

‘‘given the potential systems changes 

required by the MPID requirement, 

FINRA will provide additional time for 

firms to implement the MPID 

requirement.’’ 6 Because of the time 

necessary to make many of these 

systems changes, FINRA also noted in 

its response to comments on SR– 

FINRA–2013–042 that ‘‘FINRA believes 

increased transparency in the over-thecounter market is necessary and 

beneficial and can be more readily 

achieved through reporting 

requirements before the MPID 

requirement is implemented. 

Consequently, FINRA declines to 

eliminate the reporting requirement 

from the first phase of the Proposal but 

reaffirms its commitment to reassessing 

its need following implementation of 

the MPID requirement.’’ 7 The selfreporting requirements in Rule 4552 

were implemented on May 12, 2014, 

and FINRA began publishing ATS data 

on June 2, 2014; consequently, the 

transparency benefits of the new selfreporting rule are already in place, and 

ATS volume information is currently 

available on FINRA’s Web site.8

For the past several months, FINRA 

staff has been discussing 

implementation issues arising with the 

MPID requirement with various ATSs 

and industry trade groups. In large part, 

these issues involved specific, detailed 

scenarios ATSs must program for to 

report trades to a FINRA trade reporting 

facility or to report order information to 

FINRA’s Order Audit Trail System 

(‘‘OATS’’). In response to these 

inquiries, FINRA published written 

guidance for ATSs on trade reporting 

and OATS reporting on September 15, 

2014.9 As part of this guidance, FINRA 

clarified ATSs’ trade reporting 

obligations regarding the appropriate 

indication of MPIDs in various trade 

reporting scenarios, the use of tape and 

non-tape reports for ATS transactions, 

the capacity of ATSs on trade reports, 

and the inclusion of short sale 

indicators on trade reports. 

Members have requested that FINRA 

postpone the implementation date for 

the ATS MPID requirement so that 

members can ensure that their trade 

reports and OATS reports comply with 

this guidance. FINRA believes that it 

would be beneficial to postpone the 

implementation date by approximately 

three months to provide firms with 

sufficient time to incorporate this 

guidance into their coding for the MPID 

requirement. A postponement should 

help ensure that firms are consistently 

reporting similar information to FINRA 

and that FINRA’s audit trail information 

is correct and reliable. FINRA believes 

that, if additional time is not provided, 

firms may not be ready to comply with 

the new guidance by November 10, 

2014, and FINRA’s audit trail could be 

less accurate as a result. 

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

effective date and the implementation 

date will be the date of filing, October 

2, 2014. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,10 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 

postponing the implementation date of 

the ATS MPID requirement by three 

months will provide firms with 

sufficient time to incorporate FINRA’s 

new trade reporting and OATS guidance 

into their coding for the MPID 

requirement. This additional time 

should help ensure that firms are 

reporting information to FINRA so that 

FINRA’s audit trail information is 

consistent, correct, and reliable. FINRA 

believes that, if additional time is not 

provided, firms may not be ready to 

comply with the new guidance and 

FINRA’s audit trail could be less 

accurate. Inconsistent reporting of ATS 

order and trade information could also 

adversely affect FINRA’s ability to rely 

on automated surveillance patterns to 

detect potential misconduct. 

B. 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. FINRA 

believes that extending the 

implementation date of the new ATS 

MPID requirement will provide firms 

with needed additional time so that they 

can better comply with recently-issued 

FINRA guidance on an ATS’s trade 

reporting and OATS obligations. 

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 11 and Rule 19b– 

4(f)(6) thereunder.12

FINRA has requested that the 

Commission waive the 30-day operative 

delay, so that the proposed rule change 

would be operative on filing. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. By making the proposed 

rule change operative immediately 

FINRA’s ATS members can immediately 

be afforded notice of the additional time 

available for compliance with the MPID 

requirement. Therefore, the Commission 

hereby waives the 30-day operative 

delay and designates the proposed rule 

change operative upon filing.13

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. 

mstockstill on DSK4VPTVN1PROD with NOTICES

62502 Federal Register / Vol. 79, No. 201 / Friday, October 17, 2014 / Notices 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 68888 

(February 8, 2013), 78 FR 10668 (February 14, 2013) 

(SR–CBOE–2012–120) (the ‘‘SPXPM Pilot Program 

Approval Order’’). 

4See Securities Exchange Act Release No. 70087 

(July 31, 2013), 78 FR 47809 (August 6, 2013) (SR– 

CBOE–2013–055) (the ‘‘P.M.-settled XSP Approval 

Order’’). 

5For more information on SPXPM, P.M.-settled 

XSP or the Pilot Program, see the SPXPM Approval 

Order and the P.M.-settled XSP Approval Order. 

6See Securities Exchange Act Release No. 71424 

(January 28, 2014), 79 FR 6249 (February 3, 2014) 

(SR–CBOE–2014–004). 

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–2014–042 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. 

All submissions should refer to File 

Number SR–FINRA–2014–042. 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–2014–042 and 

should be submitted on or before 

November 7, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24682 Filed 10–16–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73338; File No. SR–CBOE– 

2014–076] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Extend a Pilot 

Program 

October 10, 2014. 

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 October 

3, 2014, Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) 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 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 proposes to extend a 

pilot program. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http://

www.cboe.com/AboutCBOE/

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

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 

On February 8, 2013, the Exchange 

received approval of a rule change that 

established a Pilot Program that allows 

the Exchange to list options on the S&P 

500 Index whose exercise settlement 

value is derived from closing prices on 

the last trading day prior to expiration 

(‘‘SPXPM’’).3 On July 31, 2013, the 

Exchange received approval of a rule 

change that amended the Pilot Program 

to allow the Exchange to list options on 

the Mini-SPX Index (‘‘XSP’’) whose 

exercise settlement value is derived 

from closing prices on the last trading 

day prior to expiration (‘‘P.M.-settled’’) 4

(together, SPXPM and P.M.-settled XSP 

to be referred to herein as the ‘‘Pilot 

Products’’).5 In January 2014, the 

Exchange filed a proposed rule change 

that extended the pilot period from 

February 8, 2014 to November 3, 2014.6

The Exchange hereby proposes to 

extend the duration of this pilot period 

to end on May 3, 2016. 

During the course of the Pilot Program 

and in support of the extension of the 

Pilot Program, the Exchange has 

submitted to the Commission reports 

regarding the Pilot Program which detail 

the Exchange’s experience with the Pilot 

Program, pursuant to the SPXPM 

Approval Order and the P.M.-settled 

XSP Approval Order. Specifically, the 

Exchange has submitted a Pilot Program 

report to the Commission (the ‘‘annual 

report’’). The annual report has 

contained an analysis of volume, open 

interest, and trading patterns. The 

analysis examines trading in Pilot 

Products as well as trading in the 

securities that comprise the underlying 

index. In addition, for series that exceed 

certain minimum open interest 

parameters, the annual report provides 

analysis of index price volatility and 

share trading activity. In addition to the 

annual report, the Exchange provides 

the Commission with periodic interim 

mstockstill on DSK4VPTVN1PROD with NOTICES