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

65278 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 

6See OCC By-Laws, Article 1.L(5). 

7See, OCC By-Laws, Article V, Section 1, 

Interpretation and Policy .07A. 

8 15 U.S.C. 78q–1(b)(3)(F). 

9 15 U.S.C. 78q–1(b)(3)(I). 

meeting of the Committee, and not by 

the Executive Chairman, the 

Management Vice Chairman, the 

President, or their delegate. 

In the case of a Hedge Clearing 

Member requesting a business 

expansion in order to be approved as 

Market Loan Clearing Member, the 

clearing member will have already been 

subject a robust risk review by the 

Committee concerning such clearing 

member’s ability to participate in stock 

loan activity at OCC. Accordingly, the 

review of the Market Loan business 

expansion request by either the 

Committee and/or the Executive 

Chairman, the Management Vice 

Chairman, the President, or their 

delegate would be primarily operational 

in nature and involve ensuring that the 

clearing member: (1) Is a U.S. Clearing 

Member, (2) is a member of a Loan 

Market,6 (3) is a participant of the 

Depository Trust Company and has 

executed certain agreements with the 

Depository Trust Company, and (4) 

executes applicable agreements with 

OCC.7 The Committee and/or the 

Executive Chairman, the Management 

Vice Chairman, the President, or their 

delegate would also review the current 

financial risk profile of the clearing 

member in connection with the business 

expansion request in order to verify that 

the clearing member continues to meet 

OCC’s financial requirements. OCC 

believes that a second risk review by the 

Committee would be duplicative 

because the Committee has already 

analyzed and approved the clearing 

member’s ability to participate in stock 

loan activity at OCC. In addition, OCC 

does not believe that review and 

approval of this type of business 

expansion request is an appropriate use 

of the Committee’s time given other, 

more substantive, issues the Committee 

must consider. Therefore, OCC proposes 

to amend Article V, Section 1, 

Interpretation and Policy .03 of its ByLaws to provide the Executive 

Chairman, the President, or their 

delegate with the authority to approve 

the 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. OCC will implement appropriate 

procedures to ensure that Hedge 

Clearing Members meet the 

requirements to become Market Loan 

Clearing Members and participate and 

the Market Loan Program. 

2. Statutory Basis 

OCC believes that the proposed rule 

change is consistent with Section 

17A(b)(3)(F) of Act 8 because it is 

designed to remove impediments to a 

national system for the prompt and 

accurate clearance and settlement of 

securities transactions through the 

removal of administrative and 

ministerial obligations of the 

Committee. By providing the Executive 

Chairman, the President or their 

delegate the authority to review and 

approve the business expansion 

requests of Hedge Clearing Members 

that would like to become Market Loan 

Clearing Members without further 

review by the Committee, clearing 

members and their customers will not 

be subject to an additional and timeconsuming review by the Committee. In 

addition, the proposed rule change will 

allow the Committee to focus on 

substantive risk issues. The proposed 

rule change is not inconsistent with any 

rules of OCC, including those proposed 

to be amended. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

OCC does not believe that the 

proposed rule change would impose a 

burden on competition.9 The proposed 

rule change will ensure that OCC may 

provide timely and efficient services to 

its clearing members because it will 

remove administrative and ministerial 

steps associated with certain types of 

business expansion requests. The 

proposed rule change will apply to all 

clearing members and will not 

substantively change the requirements 

for Hedge Clearing Member to be 

approved as Market Loan Clearing 

Members. The Committee’s review and 

approval of a Market Loan Clearing 

Member business expansion requests 

from a Hedge Clearing Member would 

be duplicative of prior action by the 

Committee since a Market Loan Clearing 

Member must first be approved as a 

Hedge Clearing Member, and the 

Committee will have already considered 

substantive issues concerning a clearing 

member’s ability to participate in stock 

loan activity cleared through OCC when 

the clearing member was designated as 

a Hedge Clearing Member. Accordingly, 

OCC does not believe that the proposed 

rule will impose any burden on 

competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

Written comments on the proposed 

rule change were not and are not 

intended to be solicited with respect to 

the proposed rule change and none have 

been received. 

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 

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– 

OCC–2014–19 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–OCC–2014–19. 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 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 65279 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See SR–BX–2014–050. 

4The Exchange invoice specifies the Exchange 

contact persons with whom to dispute the invoice. 

5This proposal would not apply to invoices 

related to November 2014 billing. 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

8See Chapter XV, Section 7 in the BX Rules. 

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 OCC and on OCC’s Web site at 

http://www.theocc.com/components/

docs/legal/rules_and_bylaws/sr_occ_14_

19.pdf. 

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–OCC–2014–19 and should 

be submitted on or before November 24, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26009 Filed 10–31–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73452; File No. SR–BX– 

2014–054] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Billing Policy 

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, NASDAQ OMX BX, Inc. (‘‘BX’’ 

or ‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 amend 

Exchange Rule 7011, and re-title it 

‘‘Collection of Exchange Fees and Other 

Claims and Billing Policy,’’ and to 

require BX members to submit billing 

disputes within a certain time period. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqomxbx.

cchwallstreet.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 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 purpose of the proposed rule 

change is to amend Rule 7011, which 

was recently filed,3 to require all pricing 

disputes to be submitted to the 

Exchange in writing 4 and accompanied 

by supporting documentation within 

sixty days of receipt of an invoice. The 

Exchange believes that this practice will 

conserve Exchange resources which are 

expended when untimely billing 

disputes require staff to research 

applicable fees and order information 

beyond two months after the transaction 

occurred. 

The sixty days would first apply to 

invoices related to transactional billing 

in December 2014 and would apply 

thereafter.5 The Exchange proposes to 

apply the billing policy in Rule 7011 to 

the following 7000 series Rules: 7001 

(Membership Fees), 7015 (Access 

Services), 7016 (BX Pre-Trade Risk 

Management), 7018 (NASDAQ OMX BX 

Equities System Order Execution and 

Routing), 7021 (BX Trading and 

Compliance Data Package Fee), 7027 

(Aggregation of Activity of Affiliated 

Members), 7029 (Installation, Removal 

or Relocation), 7030 (Other Services), 

7034 (Co-Location Services), 7051 

(Direct Connectivity to BX), 7055 (Short 

Sale Monitor), 7058 (QView). 

Further, this proposal would provide 

a cost savings to the Exchange in that it 

would alleviate administrative 

processes related to the untimely review 

of billing disputes which divert staff 

resources away from the Exchange’s 

regulatory and business purposes. 

In addition, the Exchange proposes to 

amend the title of Exchange Rule 7011 

from ‘‘Collection of Exchange Fees and 

Other Claims’’ to ‘‘Collection of 

Exchange Fees and Other Claims and 

Billing Policy.’’ The Exchange believes 

that the proposed title provides a more 

specific description of Rule 7011. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 6 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 7

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 a national market 

system, and, in general to protect 

investors and the public interest, by 

providing a uniform practice for 

disputing fees. 

The Exchange believes the 

requirement that all pricing disputes, for 

certain specified fees and rebates, must 

be submitted to the Exchange within 

sixty days from receipt of the invoice 

will provide its members with guidance 

on disputing pricing. The proposal 

equally applies to all BX members. Also, 

the Exchange’s administrative costs 

would be lowered as a result of this 

policy because staff resources would not 

be diverted to review untimely requests 

regarding billing. 

The Exchange believes that sixty days 

is ample time to review an invoice and 

dispute any pricing related to the 

transactions for that time period. This 

policy applies today with respect to BX 

Options billing.8 The Exchange is 

seeking to apply this policy to all BX 

members alike in the same manner. 

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 

mstockstill on DSK4VPTVN1PROD with NOTICES