63194 Federal Register / Vol. 79, No. 204 / Wednesday, October 22, 2014 / Notices 

18 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)(4)(ii). 

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 after publication (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 

the 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– 

NYSE–2014–53 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 20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2014–53. 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 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–NYSE– 

2014–53 and should be submitted on or 

before November 12, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–25079 Filed 10–21–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73370; File No. SR–CME– 

2014–41] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change to CME Rule 816 

October 16, 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 

7, 2014, Chicago Mercantile Exchange 

Inc. (‘‘CME’’) 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 

primarily by CME. CME filed the 

proposal pursuant to Section 19(b)(3)(A) 

of the Act,3 and Rule 19b–4(f)(4)(ii) 4

thereunder, so that the proposal was 

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 

CME is proposing to make certain 

changes to CME Rule 816 which governs 

guaranty fund deposits. More 

specifically, the proposed changes 

would amend CME Rule 816 (Guaranty 

Fund Deposit) to establish CME risk 

management staff as responsible for 

determining one of the two alternative 

minimum amounts for clearing 

members’ Base Guaranty Fund deposits. 

The proposed changes would only 

impact the CME Base Guaranty Fund 

and would not impact the CME CDS 

Guaranty Fund. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CME 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. CME has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of these statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

CME is registered as a derivatives 

clearing organization with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and operates a 

substantial business clearing futures and 

swaps contracts subject to the 

jurisdiction of the CFTC. CME is 

proposing to make certain changes to 

CME Rule 816 which governs guaranty 

fund deposits. The proposed changes 

would only impact the CME Base 

Guaranty Fund and would not impact 

the CME CDS Guaranty Fund. 

More specifically, the proposed 

changes would amend CME Rule 816 

(Guaranty Fund Deposit) to establish 

CME risk management staff as 

responsible for determining one of the 

two alternative minimum amounts for 

clearing members’ Base Guaranty Fund 

deposits. Under current Rule 816, the 

minimum Base Guaranty Fund deposit 

of each clearing member is calculated as 

the greater of (a) a minimum amount 

specified by the Clearing House Risk 

Committee (‘‘CHRC’’) or (b) the clearing 

member’s proportionate share of the 

‘‘Aggregate Guaranty Fund Deposit,’’ an 

amount which is also determined by the 

CHRC. 

Revised Rule 816 would empower 

CME risk management staff rather than 

the CHRC to determine the Aggregate 

Guaranty Fund Deposit, thus enabling 

risk management staff to adjust the 

minimum Base Guaranty Fund deposit 

as necessary to remain in compliance 

with CME’s financial resource 

requirements under applicable 

Commodity Futures Trading 

Commission (‘‘CFTC’’) regulations. The 

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Federal Register / Vol. 79, No. 204 / Wednesday, October 22, 2014 / Notices 63195 

5 15 U.S.C. 78q–1. 

6 15 U.S.C. 78q–1(b)(3)(F). 

7 15 U.S.C. 78q–1. 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(4)(ii). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(4)(ii). 

‘greater of’ measure established in Rule 

816 will remain unchanged, meaning 

risk management staff may not establish 

a clearing member’s minimum Base 

Guaranty Fund deposit lower than the 

minimum amount specified by the 

CHRC. 

Additionally, a paragraph referencing 

Kansas City Board of Trade (‘‘KCBT’’) 

clearing permit holders is being 

removed from CME Rule 816 as the 

permit holders’ status has expired 

pursuant to the terms of the KCBTChicago Board of Trade merger 

agreement. 

As highlighted above, the proposed 

changes in this filing are limited to 

CME’s Base Guaranty Fund and 

therefore do not impact CME’s CDS 

guaranty fund. The proposed rule 

change would become effective 

immediately but would be 

operationalized on October 17, 2014. 

CME believes the proposed rule 

change is consistent with the 

requirements of the Exchange Act 

including Section 17A of the Exchange 

Act.5 The proposed changes would 

enhance CME’s ability to manage risks 

posed by its clearing members by 

enabling clearing house staff to require 

a higher minimum Base Guaranty Fund 

deposit amount as needed. Allowing 

staff rather than the CHRC to determine 

the Aggregate Guaranty Fund Deposit 

amount provides CME with additional 

risk management flexibility. For these 

reasons, the proposed changes should 

be seen to promote the prompt and 

accurate clearance and settlement of 

securities transactions and, to the extent 

applicable, derivatives agreements, 

contracts, and transactions, to assure the 

safeguarding of securities and funds 

which are in the custody or control of 

the clearing agency or for which it is 

responsible, and, in general, to protect 

investors and the public interest 

consistent with Section 17A(b)(3)(F) of 

the Exchange Act.6

Furthermore, the proposed changes 

are limited to CME’s Base Guaranty 

Fund, which means the proposed 

changes are limited in their effect to 

products that are under the exclusive 

jurisdiction of the CFTC. As such, the 

proposed CME changes are limited to 

CME’s activities as a DCO clearing 

products that are not security-based 

swaps. CME notes that the policies of 

the CFTC with respect to administering 

the Commodity Exchange Act are 

comparable to a number of the policies 

underlying the Exchange Act, such as 

promoting market transparency for overthe-counter derivatives markets, 

promoting the prompt and accurate 

clearance of transactions and protecting 

investors and the public interest. 

Because the proposed changes are 

limited in their effect to products that 

are under the exclusive jurisdiction of 

the CFTC and are therefore offered 

under CME’s authority to act as a DCO, 

the proposed changes are properly 

classified as effecting a change in an 

existing service of CME that: 

(a) Primarily affects the clearing 

operations of CME with respect to 

products that are not securities, 

including futures that are not security 

futures, swaps that are not securitybased swaps or mixed swaps, and 

forwards that are not security forwards; 

and 

(b) does not significantly affect any 

securities clearing operations of CME or 

any rights or obligations of CME with 

respect to securities clearing or persons 

using such securities-clearing service. 

As such, the changes are therefore 

consistent with the requirements of 

Section 17A of the Exchange Act 7 and 

are properly filed under Section 

19(b)(3)(A) 8 and Rule 19b–4(f)(4)(ii) 9

thereunder. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CME does not believe that the 

proposed rule change will have any 

impact, or impose any burden, on 

competition. The proposed changes 

would enhance CME’s ability to manage 

risks posed by its clearing members by 

enabling clearing house staff to require 

a higher minimum Base Guaranty Fund 

deposit amount as needed. Allowing 

staff rather than the CHRC to determine 

the Aggregate Guaranty Fund Deposit 

amount provides CME with additional 

risk management flexibility. Further, the 

proposed changes relate only to 

products that fall under the exclusive 

jurisdiction of the CFTC. As such, these 

proposed changes do not affect the 

security-based swap clearing activities 

of CME in any way and therefore do not 

impose any burden on competition that 

is inappropriate in furtherance of the 

purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

CME has not solicited, and does not 

intend to solicit, comments regarding 

this proposed rule change. CME has not 

received any unsolicited written 

comments from interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective upon filing pursuant to Section 

19(b)(3)(A) 10 of the Act and Rule 19b– 

4(f)(4)(ii) 11 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– 

CME–2014–41 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–CME–2014–41. 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 

mstockstill on DSK4VPTVN1PROD with NOTICES

63196 Federal Register / Vol. 79, No. 204 / Wednesday, October 22, 2014 / Notices 

12 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 ISE Rule 1800. 

5See ISE Rule 1800. 

filings will also be available for 

inspection and copying at the principal 

office of CME and on CME’s Web site at 

http://www.cmegroup.com/marketregulation/rule-filings.html. 

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–CME–2014–41 and should 

be submitted on or before November 12, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–25076 Filed 10–21–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73382; File No. SR–MIAX– 

2014–52] 

Self-Regulatory Organizations: Miami 

International Securities Exchange LLC; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend MIAX Rule 1107 

Concerning Exchange Arbitrations 

October 17, 2014. 

Pursuant to the provisions of 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 2, 2014, 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 and II below, 

which Items have been substantially 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. The 

Exchange has designated the proposed 

rule change as constituting a ‘‘noncontroversial’’ rule change under Rule 

19b–4(f)(6) of the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

rules to harmonize the language of 

MIAX Rule 1107 (Arbitration) with that 

of another options exchange, the 

International Securities Exchange, LLC 

(‘‘ISE’’). 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 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 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 

MIAX Rule 1107 (Arbitration) to 

harmonize it with the rules of ISE in 

order to incorporate by reference the 

arbitration rules of Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’).4

The current MIAX Rule 1107 is based 

on ISE Rule 1800, but incorporates by 

reference the arbitration rules of the 

Chicago Board Options Exchange 

(‘‘CBOE’’). This was appropriate when 

the Exchange maintained a Regulatory 

Service Agreement (‘‘RSA’’) with CBOE. 

The Exchange, however, recently 

entered into a RSA with FINRA, which 

became effective on October 1, 2014. 

The Exchange believes the proposed 

rule change to reference the arbitration 

rules of FINRA is consistent with this 

recent change in regulatory service 

providers. 

Proposed Rule Change 

The Exchange proposes to replace 

current references to CBOE arbitration 

rules in MIAX Rule 1107 with 

references to the corresponding 

arbitration rules of FINRA. The 

proposed rule change would align 

MIAX’s arbitration rule with the 

arbitration rule of ISE, which also 

references FINRA’s arbitration rules.5

As proposed, the Rule 12000 Series and 

Rule 13000 Series of the FINRA Manual 

(Code of Arbitration Procedures for 

Customer Disputes and Code of 

Arbitration Procedures for Industry 

Disputes, respectively) (collectively, the 

‘‘FINRA Code of Arbitration’’), as the 

same may be in effect from time to time, 

would govern Exchange arbitrations 

except as may be specified in proposed 

Rule 1107. Definitions in the FINRA 

Code of Arbitration would have the 

same meaning as prescribed therein, 

and procedures in the FINRA Code of 

Arbitration would have the same 

application with respect to Exchange 

arbitrations. 

Under proposed Rule 1107, any 

dispute, claim, or controversy arising 

out of or in connection with the 

business of any member of the Exchange 

(‘‘Member’’), or arising out of the 

employment or termination of 

employment of associated person(s) 

with any Member would be arbitrable, 

except that: (1) A dispute, claim, or 

controversy alleging employment 

discrimination (including a sexual 

harassment claim) in violation of a 

statue may only be arbitrated if the 

parties have agreed to arbitrate it after 

the dispute arose; and (2) any type of 

dispute, claim, or controversy that is not 

permitted to be arbitrated under the 

FINRA Code of Arbitration (such as 

class action claims) shall not be eligible 

for arbitration under proposed Rule 

1107. In addition, under the proposal 

the requirements of FINRA Rule 2268 

(Requirements When Using Predispute 

Arbitration Agreements for Customer 

Accounts) would apply to predispute 

arbitration agreements between 

Members and their customers. 

In addition, under proposed Rule 

1107, if any matter comes to the 

attention of an arbitrator during, and in 

connection with, the arbitrator’s 

participation in a proceeding, either 

from the record of the proceeding or 

from material or communications 

related to the proceeding, that the 

arbitrator has reason to believe may 

constitute a violation of the Exchange’s 

rules or the federal securities laws, the 

arbitrator may initiate a referral of the 

matter to the Exchange for disciplinary 

investigation; provided, however, that 

any such referral could only be initiated 

by an arbitrator after the matter before 

her or him has been settled or otherwise 

disposed of, or after an award finally 

disposing of the matter has been 

rendered pursuant to FINRA Rules 

12904 or 13904, as applicable. 

If the proposal is approved, the 

principle structure of the Exchange’s 

arbitration rule would remain the same, 

except that it would reference the 

applicable FINRA arbitration rules in 

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