Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 65271 

6 Id. 7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

cleared CDS contracts. In addition, the 

proposed revisions are consistent with 

the relevant requirements of Rule 17Ad– 

22. In particular, the amendments to the 

Risk Management Framework will 

enhance the financial resources 

available to the Clearing House by 

imposing a more conservative initial 

margin requirement, and are therefore 

reasonably designed to meet the margin 

and financial resource requirements of 

Rule 17Ad–22(b)(2–3). As such, the 

proposed rule changes are designed to 

promote the prompt and accurate 

clearance and settlement of securities 

transactions, derivatives agreements, 

contracts, and transactions within the 

meaning of Section 17A(b)(3)(F) 6 of the 

Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

ICC does not believe the proposed 

rule changes would have any impact, or 

impose any burden, on competition. 

The risk model enhancements apply 

uniformly across all market participants. 

Therefore, ICC does not believe the 

proposed rule changes 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 

Written comments relating to the 

proposed rule change have not been 

solicited or received. ICC will notify the 

Commission of any written comments 

received by ICC. 

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– 

ICC–2014–18 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–ICC–2014–18. 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 ICE Clear Credit and on ICE 

Clear Credit’s Web site at https://

www.theice.com/clear-credit/regulation. 

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–ICC–2014–18 and should 

be submitted on or before November 24, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26005 Filed 10–31–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73446; File No. SR–BX– 

2014–050] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Collection of Exchange Fees 

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 

16, 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, which is currently 

reserved, and entitle it ‘‘Collection of 

Exchange Fees and Other Claims’’ and 

require each BX member, and all 

applicants for registration as such, to 

provide a clearing account number for 

an account at the National Securities 

Clearing Corporation (‘‘NSCC’’) for 

purposes of permitting the Exchange to 

debit certain fees, fines, charges and/or 

other monetary sanctions or other 

monies due and owing to the Exchange. 

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 

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65272 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices 

3The 7000 series rules in the BX Rulebook list 

charges for membership, services and equipment. 

Only the Rules which require payment to the 

Exchange would be subject to direct debit. By way 

of example, Rule 7003, Registration and Processing 

Fees, fees are collected by FINRA. 

4The 8000 series rules in the BX Rulebook list 

sanctions associated with disciplinary actions. Any 

disciplinary fines or sanctions collected pursuant to 

the 8000 series shall be subject to direct debit to the 

extent described within this rule change. See also 

note 6 for exceptions to debits. 

5See Chapter XV, Section 1 in the BX Rules. 

6The Exchange will not debit accounts for fees 

that are unusually large or for special 

circumstances, unless such debiting is requested by 

the BX member. 

7The monthly invoice will indicate that the 

amount on the invoice will be debited from the 

designated NSCC account. Each month, the 

Exchange will send a file to the BX member’s 

clearing firm which will indicate the amounts to be 

debited from each member. If a BX member is ‘‘selfclearing’’, no such file would be sent as the member 

would receive the invoice, as noted above, which 

would indicate the amount to be debited. 

8BX members may receive invoices either 

electronically, by mail or by both methods. 

9This includes, among other things, fines and 

sanctions which result from disciplinary 

proceedings or actions taken pursuant to the 8000 

series of BX Rules. With respect to disciplinary 

proceedings, the Exchange would not debit any 

monies until such action is final. The Exchange 

would not consider an action final until all appeal 

periods have run and/or all appeal timeframes are 

exhausted. With respect to non-disciplinary actions, 

the Exchange would similarly not take action to 

debit a member account until all appeal periods 

have run and/or all appeal timeframes are 

exhausted. Any uncontested disciplinary or nondisciplinary actions will be debited, and the 

amount due will appear on the BX member’s 

invoice prior to the actual NSCC debit. 

10The initial debit will include all outstanding 

fees through December 2014. 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

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 to require 

BX members, and all applicants for 

registration as such, to provide a 

clearing account number for an account 

at NSCC for purposes of permitting the 

Exchange to debit any undisputed or 

final fees, fines, charges and/or other 

monetary sanctions or other monies due 

and owing to the Exchange or other 

charges related to certain 7000 series 

rules 3 and the 8000 4 series rules which 

are due and owing to BX. The Exchange 

would entitle Rule 7011 ‘‘Collection of 

Exchange Fees and Other Claims.’’ 

Currently, the Exchange requires all 

Options Participants to provide such an 

NSCC account number.5 The Exchange 

believes that the proposed debiting 

process for BX members that conduct an 

equities business would create an 

efficient method of collecting 

undisputed or final fees, fines, charges 

and/or other monetary sanctions or 

monies due and owing to the 

Exchange.6 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 by 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. 

The Exchange proposes to require BX 

members and applicants to provide a 

clearing account number for an account 

at NSCC in order to permit the Exchange 

to debit any undisputed or final fees, 

fines, charges and/or monetary 

sanctions or other monies due and 

owing to the Exchange or other charges 

related to the 7000 series rules, as 

specified below, and the 8000 series 

rules. Specifically, the following 7000 

series rules will be subject to proposed 

Rule 7011: 7001 (Membership Fees), 

7015 (Access Services), 7016 (BX PreTrade 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). 

The Exchange would send a monthly 

invoice 7 to each BX member on 

approximately the 3th–10th business 

day of the following month.8 The 

Exchange would also send a file to 

NSCC each month on approximately the 

23rd of the following month to initiate 

the debit of the appropriate amount 

stated on the BX member’s invoice for 

the prior month. Because the BX 

member would receive an invoice well 

before any monies are debited (normally 

within two weeks), the BX member 

would have adequate time to contact the 

staff with any questions concerning its 

invoice. If a BX member disagrees with 

the invoice, the Exchange would not 

commence the debit until the dispute is 

resolved. Specifically, the Exchange will 

not include the disputed amount in the 

debit if the member has disputed the 

amount in writing to the Exchange’s 

designated staff by the 15th of the 

month, or the following business day if 

the 15th is not a business day, and the 

amount in dispute is at least $10,000 or 

greater. 

Once NSCC receives the file from the 

Exchange, NSCC would proceed to debit 

the amounts indicated from the clearing 

members account. In the instance where 

the BX member clears through an 

Exchange clearing member, the 

estimated transaction fees owed to the 

Exchange are typically debited by the 

clearing member on a daily basis in 

order to ensure adequate funds have 

been escrowed. The Exchange would 

debit any monies owed including 

undisputed or final fees, fines, charges 

and/or monetary sanctions or monies 

due and owed to the Exchange.9 The 

Exchange believes that the debit process 

would eliminate the risk of unpaid 

invoices because of the large amounts of 

capital held at NSCC by BX members. 

The Exchange proposes this rule 

change become operative with respect to 

December 2014 billing. The Exchange 

will debit December 2014 billing in 

January 2015 pursuant to the process 

described in this rule change.10 The 

Exchange will notify BX members of 

this rule change in an Equity Trader 

Alert to provide its members ample time 

to provide the Exchange with the 

information necessary for the direct 

debit and prepare for the change to the 

collection process. BX members will be 

required to provide an NSCC number 

prior to January 1, 2015. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 11 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 12

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, 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 BX 

members with an efficient process to 

pay undisputed or final fees, fines, 

charges and/or monetary sanctions or 

monies dues and owing to the 

Exchange. 

The Exchange believes that its 

proposal to debit NSCC accounts is 

reasonable because it would ease the BX 

member’s administrative burden in 

paying monthly invoices, avoid overdue 

balances and provide same day 

collection from all BX members who 

owe monies to the Exchange. 

mstockstill on DSK4VPTVN1PROD with NOTICES

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