Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 65273 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(6). 

15 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

The Exchange believes that its 

proposal to debit NSCC accounts is 

equitable and not unfairly 

discriminatory because it will apply to 

all BX members in a uniform manner. 

Today, the debit process is applied to all 

Options Participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. With this 

proposal, the proposed debit process 

would apply uniformly to all BX 

members as it does today with all 

Options Participants. 

Further, this proposal would provide 

a cost savings to the Exchange in that it 

would alleviate administrative 

processes related to the collection of 

monies owed to the Exchange for BX 

members conducting an equities 

business, as it does today for BX 

Options Participants. Collection matters 

divert staff resources away from the 

Exchange’s regulatory and business 

purposes. In addition, the debiting 

process would prevent BX member 

accounts from becoming overdue. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not significantly affect the 

protection of investors or the public 

interest; does not impose any significant 

burden on competition; and by its terms 

does not 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) 13 of the 

Act and Rule 19b–4(f)(6) thereunder.14

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. 

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– 

BX–2014–050 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–BX–2014–050. 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 

filing also will be available for 

inspection and copying at the principal 

offices 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–BX– 

2014–050, and should be submitted on 

or before November 24, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Kevin M. O’ Neill, 

Deputy Secretary. 

[FR Doc. 2014–26007 Filed 10–31–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73453; File No. SR– 

NYSEARCA–2014–118] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Arca 

Equities Rule 7.16(f)(v) To Provide That 

Proactive if Locked Modifiers Will Be 

Ignored for Short Sale Orders During a 

Short Sale Period 

October 28, 2014. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on October 

15, 2014, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. 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 amend 

NYSE Arca Equities Rule 7.16(f)(v) to 

provide that Proactive if Locked 

Modifiers will be ignored for short sale 

orders during a Short Sale Period. The 

text of the proposed rule change is 

available on the Exchange’s Web site at 

www.nyse.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 

self-regulatory organization 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 

mstockstill on DSK4VPTVN1PROD with NOTICES

65274 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 

4 17 CFR 242.201(b)(1). 

5 17 CFR 242.201(b)(1)(ii). 

6A Permitted Price is one minimum price 

increment above the NBB. Rule 7.16(b)(v)(C). 

7See Rule 7.16(b)(v)(A). 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10 17 CFR 242.201(b)(1)(i) 

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

12 17 CFR 240.19b–4(f)(6). 

of those 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to amend 

NYSE Arca Equities Rule 7.16(f)(v) 

(‘‘Rule 7.16’’) to provide that Proactive 

if Locked Modifiers will be ignored for 

short sale orders during a Short Sale 

Period. 

Rule 7.16(f) sets forth how the 

Exchange handles short sale orders 

when the provisions of paragraph (b)(1) 

of Rule 201 of Regulation SHO are in 

effect.4 Rule 7.16(f)(b)(ii)(sic) provides 

that the Exchange will not execute or 

display a short sale order for a covered 

security, as defined in Rule 201 of 

Regulation SHO, at a price that is less 

than or equal to the current national 

best bid (‘‘NBB’’) if the listing market for 

such security has determined that the 

price of the covered security decreased 

by 10% or more from the prior day’s 

closing price (‘‘Short Sale Price Test’’). 

Consistent with paragraph (b)(1)(ii) of 

Rule 201 of Regulation SHO,5 Exchange 

Rule 7.16(f)(iv) defines a Short Sale 

Period as the period during which sell 

orders marked short are subject to a 

Short Sale Price Test. Rule 7.16(f)(v) 

further specifies how the Exchange 

handles short sale orders during the 

Short Sale Period. 

The Exchange proposes to add new 

Rule 7.16(f)(v)(G) to specify how the 

Exchange will handle short sale orders 

that include a Proactive if Locked 

Modifier during a Short Sale Period. As 

defined in Rule 7.31(hh), a Proactive if 

Locked Modifier is available for limit 

orders and if so designated, the 

Exchange will route the order to another 

market center pursuant to Rule 7.37(d) 

for the away market’s displayed size in 

the instance in which the other market 

center has locked the order and the 

locking market has not resolved the 

locked market situation in a timely 

manner based upon average response 

times from other market centers. If the 

order routed from the Exchange to 

another market center is not executed in 

its entirety, the Exchange shall post the 

order or portion thereof on the 

Exchange’s book. Proactive if Locked 

Modifiers are only available for 

Exchange-listed securities. 

As proposed, the Exchange will 

ignore Proactive if Locked Modifiers 

applied to short sale orders for a 

security that is in a Short Sale Period. 

The Exchange believes that it is 

appropriate to ignore the Proactive if 

Locked Modifier for short sale orders 

during a Short Sale Period because it 

would reduce the possibility that the 

Exchange will route a short sale order 

priced at or below the NBB to another 

market center. Instead, the Exchange 

will handle the short sale order 

consistent with the existing provisions 

of Rule 7.16(f)(v), as applicable, which 

may include re-pricing the order to a 

Permitted Price 6 or rejecting the order, 

if so designated by the ETP Holder.7

The Exchange will announce the 

implementation date of the systems 

functionality associated with the 

proposed rule change by Trader Update 

to be published no later than 30 days 

following the effective date. The 

implementation date will be no later 

than 30 days following the issuance of 

the Trader Update. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with Section 6(b) 

of the Act,8 in general, and furthers the 

objectives of Section 6(b)(5),9 in 

particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to, and 

perfect the mechanism of a free and 

open market and, in general, to protect 

investors and the public interest. 

The Exchange believes that ignoring 

the Proactive if Locked Modifier for 

short sale orders during a Short Sale 

Period will remove impediments to and 

perfect the mechanism of a free and 

open market because it will reduce the 

possibility that the Exchange will route 

a sell short order priced at or below the 

NBB to another market center. Rule 

201(b)(1)(i) of Regulation SHO 10

requires that a trading center prevent 

the execution or display of a short sale 

order at a price that is less than or equal 

to the NBB, but is silent on whether a 

trading center can route a short sale 

order during a Short Sale Period that is 

priced less than or equal to the NBB. 

The Exchange believes, however, that it 

is appropriate and promotes just and 

equitable principles of trade to reduce 

the possibility that the Exchange would 

route a sell short order during a Short 

Sale Period that is priced less than or 

equal to the NBB, as the receiving away 

market would otherwise be required to 

prevent the display or execution of such 

order consistent with Rule 201 of 

Regulation SHO. The Exchange 

therefore believes that by ignoring 

Proactive if Locked Modifiers for short 

sale orders during a Short Sale Period, 

the Exchange would comply with Rule 

201 of Regulation SHO by handling the 

order consistent with other provisions 

of Rule 7.16(f)(v) and not shift that 

responsibility to an away market. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes the proposed rule 

change removes a burden on 

competition because it reduces the 

possibility that the Exchange would 

route a sell short order during a Short 

Sale Period that is priced less than or 

equal to the NBB, which otherwise 

would have shifted the responsibility 

for that sell short order to an away 

market. As proposed, the Exchange 

would instead be responsible for 

handling that sell short order, consistent 

with existing Rule 7.16(f)(v) and Rule 

201 of Regulation SHO. 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 11 and Rule 

19b–4(f)(6) thereunder.12 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

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

mstockstill on DSK4VPTVN1PROD with NOTICES

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