Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 65275 

13 15 U.S.C. 78s(b)(2)(B). 

14 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). 

5See Commodity Futures Trading Commission 

and Securities and Exchange Commission Joint 

Final Rule Defining ‘‘Swap,’’ ‘‘Security-Based 

Swap,’’ and ‘‘Security-Based Swap Agreement;’’ 

Mixed Swaps; Security-Based Swap Agreement 

Recordkeeping, 77 FR 48207, 48255 (August 13, 

2012). 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 13 of the Act to 

determine whether the proposed rule 

change 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 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–2014–118 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–2014–118. 

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 Section, 100 F Street NE., 

Washington, DC 20549–1090. Copies of 

the filing will also be available for 

inspection and copying at the NYSE’s 

principal office and on its Internet Web 

site at www.nyse.com. 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–2014–118 and should be 

submitted on or before November 24, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26013 Filed 10–31–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73445; File No. SR–CME– 

2014–46] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Make Changes to 

Settlement Procedures Regarding 

Seven CME Cleared OTC FX Spot, 

Forward and Swap Contracts 

October 28, 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 

20, 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 rule changes that 

are limited to its business as a 

derivatives clearing organization 

(‘‘DCO’’). More specifically, the 

proposed rule change contains 

amendments to certain aspects of CME’s 

settlement procedures for seven of 

CME’s Cleared Over-the-Counter 

(‘‘OTC’’) Foreign Exchange (‘‘FX’’) Spot, 

Forward and Swap Contracts. 

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 DCO with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and offers 

clearing services for many different 

futures and swaps products. The 

proposed rule changes that are the 

subject of this filing are limited to 

CME’s business as a DCO offering 

clearing services for CFTC-regulated 

swaps products. CME currently offers 

clearing services for cleared-only OTC 

FX contracts on a number of different 

currency pairs. These CME Cleared OTC 

FX Spot, Forward and Swap Contracts 

are non-deliverable foreign currency 

forward contracts and, as such, are 

considered to be ‘‘swaps’’ under 

applicable regulatory definitions.5 CME 

proposes to make amendments to five of 

these contracts. 

The amendments would impact the 

following CME contracts and associated 

rules: 

• Rule 270H.02.A. Day of Cash 

Settlement of Cleared OTC U.S. Dollar/ 

Chinese Renminbi (USD/RMB) Spot, 

Forwards and Swaps (Rulebook Chapter 

270H: Commodity Code: USDCNY); 

Rule 270H.02.B.—Procedures if No Cash 

Settlement Price is Available for the 

USD/RMB Cleared OTC Spot, Forwards 

and Swaps Contracts; 

• Rule 271H.02.A. Day of Cash 

Settlement of Cleared OTC U.S. Dollar/ 

mstockstill on DSK4VPTVN1PROD with NOTICES

65276 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 

6Pursuant to a teleconference with CME’s 

counsel on October 23, 2014, staff in the Division 

of Trading and Markets has revised this sentence by 

adding Rule 280H.02.A. to the description of the 

Rules that are being amended as part of the 

proposed rule change. 

7 15 U.S.C. 78q–1. 

8 15 U.S.C. 78q–1(b)(3)(F). 

9 15 U.S.C. 78q–1. 

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

11 17 CFR 240.19b–4(f)(4)(ii). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(4)(ii). 

Korean Won (USD/KRW) Spot, 

Forwards and Swaps (Rulebook Chapter 

271H: Commodity Code: USDKRW); 

Rule 271H.02.B.—Procedures if No Cash 

Settlement Price is Available for the 

USD/KRW Cleared OTC Spot, Forwards 

and Swaps Contracts; 

• Rule 279H.02.A. Day of Cash 

Settlement of Cleared OTC U.S. Dollar/ 

Indian Rupee (USD/INR) Spot, Forwards 

and Swaps (Rulebook Chapter 279H: 

Commodity Code: USDINR); 

• Rule 280H.02.A. Day of Cash 

Settlement of Cleared OTC U.S. Dollar/ 

Malaysian Ringgit (USD/MYR) Spot, 

Forwards and Swaps (Rulebook Chapter 

280H: Commodity Code: USDMYR); 

• Rule 281H.02.A. Day of Cash 

Settlement of Cleared OTC U.S. Dollar/ 

Indonesian Rupiah (USD/IDR) Spot, 

Forwards and Swaps (Rulebook Chapter 

281H: Commodity Code: USDIDR); 

• Rule 282H.02.A. Day of Cash 

Settlement of Cleared OTC U.S. Dollar/ 

Taiwan Dollar (USD/TWD) Spot, 

Forwards and Swaps (Rulebook Chapter 

282H: Commodity Code: USDTWD); and 

• Rule 283H.02.A. Day of Cash 

Settlement of Cleared OTC U.S. Dollar/ 

Philippines Peso (USD/PHP) Spot, 

Forwards and Swaps (Rulebook Chapter 

283H: Commodity Code: USDPHP). 

More specifically, CME is proposing 

to amend Rule 270H.02.B. and 

271H.02.B. to remove an outdated 

interpretation reference regarding 

fallback procedures. CME will work 

with EMTA, a trade group focused on 

the global emerging markets trading and 

investment community, and other OTC 

organizations, to make sure CME is 

aligned in the event a rate is not 

determined or published. Further, CME 

is proposing rule changes to Rules 

270H.02.A., 271H.02.A., 279H.02.A., 

Rule 280H.02.A., Rule 281H.02.A., Rule 

282H.02.A. and Rule 283H.02.A. that 

would specify that in the event that a 

‘‘Final Settlement Price’’ is not able to 

be determined for the applicable 

contracts, then the Final Settlement 

Price would be determined pursuant to 

existing CME Rule 812.6 CME Rule 812 

allows CME to establish a final 

settlement price in the event the final 

settlement price cannot be determined 

and alternative settlement procedures 

are not otherwise specified in the 

relevant product chapter. 

The changes that are described in this 

filing are limited to CME’s business as 

a DCO clearing products under the 

exclusive jurisdiction of the CFTC and 

do not materially impact CME’s 

security-based swap clearing business in 

any way. The changes will be effective 

on filing. CME notes that it has also 

certified the proposed rule changes that 

are the subject of this filing to its 

primary regulator, the CFTC, in a 

separate filing, CME Submission No. 

14–409. 

CME believes the proposed rule 

change is consistent with the 

requirements of the Act including 

Section 17A of the Act.7 CME is 

proposing the amendments to clarify 

that CME would be allowed to establish 

a final settlement price for certain OTC 

FX contracts in the event a final 

settlement price cannot be determined 

and alternative settlement procedures 

are not otherwise specified in the 

relevant product chapter. These 

amendments to CME’s fallback 

procedures are designed 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 Act.8

Furthermore, the proposed changes 

are limited in their effect to products 

offered under CME’s authority to act as 

a DCO. The products that are the subject 

of this filing are under the exclusive 

jurisdiction of the CFTC. As such, the 

proposed CME changes are limited to 

CME’s activities as a DCO clearing 

swaps that are not security-based swaps, 

futures that are not security futures and 

forwards that are not security forwards. 

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 Act, such as promoting 

market transparency for over-thecounter 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 OTC FX 

products 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 Act 9 and are 

properly filed under Section 

19(b)(3)(A) 10 and Rule 19b–4(f)(4)(ii) 11

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 amendments 

are designed to establish appropriate 

fallback settlement price procedures for 

several OTC FX contracts. Further, the 

changes are limited to CME’s derivatives 

clearing business and, as such, do not 

affect the security-based swap clearing 

activities of CME in any way and 

therefore would 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) 12 of the Act and Rule 19b– 

4(f)(4)(ii) 13 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, 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 65277 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See OCC By-Laws, Article 1.H(1). See also, OCC 

By-Laws, Article V, Section 1, Interpretation and 

Policy .07. 4See OCC By-Laws, Article 1.M(4). See also, OCC 

By-Laws, Article V, Section 1, Interpretation and 

Policy .07A. 5See OCC By-Laws, Article V, Section 1, 

Interpretation and Policy .03(e). 

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–2014–46 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–2014–46. 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 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–2014–46 and should 

be submitted on or before November 24, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26006 Filed 10–31–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73449; File No. SR–OCC– 

2014–19 ] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change To 

Permit the Executive Chairman, the 

President or a Delegate of Such Officer 

To Approve Requests by a Hedge 

Clearing Member To Become a Market 

Loan Clearing Member 

October 28, 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 

24, 2014, The Options Clearing 

Corporation (‘‘OCC’’) 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 

by OCC. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

This proposed rule change by OCC 

would amend OCC’s By-Laws to permit 

the Executive Chairman, the President 

or a delegate of such officer to approve 

requests by a Hedge Clearing Member to 

become a Market Loan Clearing 

Member, provided that such delegate is 

an officer of the rank of Senior Vice 

President or higher. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

The purpose of this proposed rule 

change is permit the Executive 

Chairman, the President or their 

delegate to approve business expansion 

requests of Hedge Clearing Members 3 to 

become Market Loan Clearing 

Members.4 Delegates of the Executive 

Chairman and/or the President must be 

an officer of the rank of Senior Vice 

President or higher. Currently, OCC’s 

By-Laws require that requests of a 

Hedge Clearing Member to become a 

Market Loan Clearing Member be 

processed through OCC’s business 

expansion process, which involves 

review and approval by OCC’s Risk 

Committee (‘‘Committee’’). As described 

below, this type of business expansion 

request is operational and 

administrative in nature and OCC does 

not believe review and approval of this 

type of business expansion request 

requires the Committee to assess the risk 

of such designation. Accordingly, OCC 

proposes to amend its rules to permit 

the Executive Chairman, the President, 

or their delegate to approve business 

expansion requests of Hedge Clearing 

Members to become Market Loan 

Clearing Members without further 

review by the Committee, provided that 

any delegate be an officer of the rank of 

Senior Vice President or higher. 

By way of background, the Committee 

is responsible for reviewing and 

approving clearing member requests to 

clear a type or a kind of transaction for 

which it is not currently approved to 

clear through OCC (i.e., a business 

expansion request).5 The Committee has 

delegated the Executive Chairman, the 

Management Vice Chairman, the 

President, or their delegate with 

authority to review and approve 

business expansion requests in response 

to requests by clearing members for 

expedited review. Such approval is then 

subject to the Committee’s review and 

ratification at its next regularly 

scheduled meeting. If a clearing member 

does not request expedited review of a 

business expansion request then such 

request will be reviewed by the 

Committee at a regularly scheduled 

mstockstill on DSK4VPTVN1PROD with NOTICES