Federal Register / Vol. 79, No. 222 / Tuesday, November 18, 2014 / Notices 68731 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4The current FINRA rulebook consists of (1) 

FINRA Rules; (2) NASD Rules; and (3) rules 

incorporated from NYSE (‘‘Incorporated NYSE 

Rules’’) (together, the NASD Rules and Incorporated 

NYSE Rules are referred to as the ‘‘Transitional 

Rulebook’’). While the NASD Rules generally apply 

to all FINRA members, the Incorporated NYSE 

Rules apply only to those members of FINRA that 

are also members of the NYSE (‘‘Dual Members’’). 

The FINRA Rules apply to all FINRA members, 

unless such rules have a more limited application 

by their terms. For more information about the 

rulebook consolidation process, see Information 

Notice, March 12, 2008 (Rulebook Consolidation 

Process). 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Commission will host the SEC 

Government-Business Forum on Small 

Business Capital Formation on 

Thursday, November 20, 2014, 

beginning at 9:00 a.m., in the 

auditorium of the Commission’s 

headquarters at 100 F Street NE., 

Washington, DC. The forum will be 

open to the public and webcast on the 

SEC’s Web site. Doors will open at 8:15 

a.m. Visitors will be subject to security 

checks. 

The forum will include remarks by 

SEC Commissioners and panel 

discussions that Commissioners may 

attend. Panel topics will include 

secondary market liquidity for securities 

of small businesses and the definition of 

accredited investor. 

For further information, please 

contact the Office of the Secretary at 

(202) 551–5400. 

Dated: November 13, 2014. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2014–27316 Filed 11–14–14; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, November 20, 2014 at 2:00 

p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or her designee, has 

certified that, in her opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matter at the Closed Meeting. 

Commissioner Stein, as duty officer, 

voted to consider the items listed for the 

Closed Meeting in closed session. 

The subject matter of the Closed 

Meeting will be: 

Institution and settlement of 

injunctive actions; 

Institution settlement of 

administrative proceedings; 

Litigation matter; and 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact the Office of the Secretary at 

(202) 551–5400. 

Dated: November 13, 2014. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2014–27355 Filed 11–14–14; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73576; File No. SR–FINRA– 

2014–045] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Update Rule CrossReferences and Make Non-Substantive 

Technical Changes to Certain FINRA 

Rules 

November 12, 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 

31, 2014, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by 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 

FINRA is proposing to update crossreferences and make other nonsubstantive changes within FINRA 

rules, primarily as the result of approval 

of new consolidated FINRA rules. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA, on the Commission’s 

Web site at http://www.sec.gov, 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, 

FINRA 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. FINRA 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 

FINRA is in the process of developing 

a consolidated rulebook (‘‘Consolidated 

FINRA Rulebook’’).4 That process 

involves FINRA submitting to the 

Commission for approval a series of 

proposed rule changes over time to 

adopt rules in the Consolidated FINRA 

Rulebook. The phased adoption and 

implementation of those rules 

necessitates periodic amendments to 

update rule cross-references and other 

non-substantive changes in the 

Consolidated FINRA Rulebook. 

The proposed rule change would 

make several such changes, as well as 

other non-substantive changes unrelated 

to the adoption of rules in the 

Consolidated FINRA Rulebook. 

First, the proposed rule change would 

update rule cross-references to reflect 

the adoption of new consolidated 

supervision rules. On December 23, 

2013, the SEC approved a proposed rule 

change to adopt NASD Rules 3010, 

3012, and 3110 as FINRA Rules 3110, 

3120, 3150, and 3170, with several 


tkelley on DSK3SPTVN1PROD with NOTICES
68732 Federal Register / Vol. 79, No. 222 / Tuesday, November 18, 2014 / Notices 

5See Securities Exchange Act Release No. 71179 

(December 23, 2013), 78 FR 79542 (December 30, 

2013) (Order Approving File No. SR–FINRA–2013– 

025). 

6See Securities Exchange Act Release No. 71467 

(February 3, 2014), 79 FR 7485 (February 7, 2014) 

(Order Approving File No. SR–FINRA–2013–053). 

7See Securities Exchange Act Release No. 62711 

(August 12, 2010), 75 FR 51124 (August 18, 2010) 

(Order Approving [sic] File No. SR–FINRA–2010– 

041). 

8See supra note 6. 

9See supra note 6. 

10 15 U.S.C. 78o–3(b)(6). 

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

12 17 CFR 240.19b–4(f)(6). 

changes. FINRA also deleted in their 

entirety the corresponding Incorporated 

NYSE Rules 342, 343, 354, 401, 401A 

and Incorporated NYSE Interpretive 

Materials 342, 343, and 351.5 The new 

rules will be implemented on December 

1, 2014. As such, the proposed rule 

change would update references to the 

new rule numbers in FINRA Rules 0150 

(Application of Rules to Exempted 

Securities Except Municipal Securities), 

1010 (Electronic Filing Requirements for 

Uniform Forms), 2210 (Communications 

with the Public), 2220 (Options 

Communications), 2330 (Members’ 

Responsibilities Regarding Deferred 

Variable Annuities), 2360 (Options), 

5210 (Publication of Transactions and 

Quotations), 8312 (FINRA BrokerCheck 

Disclosure), 9217 (Violations 

Appropriate for Disposition Under Plan 

Pursuant to SEA Rule 19d–1(c)(2)), and 

9610 (Application). 

Second, the proposed rule change 

would make technical changes to 

FINRA Rules 4553(e)(4) (Definitions), 

7410(o) (Definitions), 12104 (Effect of 

Arbitration on FINRA Regulatory 

Activities; Arbitrator Referral During or 

at Conclusion of Case), and 13104 

(Effect of Arbitration on FINRA 

Regulatory Activities; Arbitrator Referral 

During or at Conclusion of Case) to 

reflect FINRA Manual style convention 

changes. 

Third, FINRA is proposing to amend 

Rule 6170 (Primary and Additional 

MPIDs for Alternative Display Facility 

Participants) to replace the references to 

‘‘TRACS’’ with ‘‘ADF,’’ consistent with 

the changes made throughout the Rule 

6200 and 7100 Series pursuant to SR– 

FINRA–2013–053.6

Fourth, FINRA is proposing to make 

non-substantive changes to FINRA Rule 

2360(b)(23) (Tendering Procedures for 

Exercise of Options) to update crossreferences resulting from previous 

amendment to FINRA Options rules.7

FINRA also is proposing to update the 

cross-references in Rules 6282(f)(2) to 

reflect the renumbering of Rule 7130(c) 

as 7130(f) pursuant to SR–FINRA–2013– 

053.8 In addition, FINRA is proposing to 

amend Rule 7110(i) to correct a crossreference to Rule 6120, which instead 

should be to Rule 6220 (Definitions).9

Finally, the proposed rule change 

would also amend Rule 7120(a)(2)(E) to 

delete a misplaced ‘‘the,’’ which was 

inadvertently proposed in SR–FINRA– 

2013–053. The text would now read 

‘‘each System identified trade.’’ 

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

implementation date for the proposed 

rule change will be December 1, 2014. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,10 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes the 

proposed rule change will provide 

greater clarity to members and the 

public regarding FINRA’s rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change brings clarity and 

consistency to FINRA rules without 

adding any burden on firms. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing 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 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) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

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– 

FINRA–2014–045 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–FINRA–2014–045. 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 FINRA. 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–FINRA– 

2014–045, and should be submitted on 

or before December 9, 2014. 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 222 / Tuesday, November 18, 2014 / Notices 68733 

13 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)(6). As required under Rule 

19b–4(f)(6)(iii), OCC provided the Commission with 

written notice of its intent to file the proposed rule 

change, along with a brief description and the text 

of the proposed rule change, at least five business 

days prior to the date of filing the proposed rule 

change, or such shorter time as designated by the 

Commission. 

5See, OCC Rules 901(f), 901(g) and 1403(a). 

6The revised Application Documents will 

contain an ‘‘other’’ category of applicant, which 

could be used in the event a sole proprietor applies 

for clearing membership at OCC. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’ Neill, 

Deputy Secretary. 

[FR Doc. 2014–27187 Filed 11–17–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73577; File No. SR–OCC– 

2014–20] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change Notice of 

Filing of Proposed Rule Change to 

Concerning Updates to Clearing 

Member Documents 

November 12, 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 November 

10, 2014, The Options Clearing 

Corporation (‘‘OCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by OCC. OCC filed the proposed rule 

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

of the Act and Rule 19b-4(f)(6) 4

thereunder. 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 The 

Options Clearing Corporation (‘‘OCC’’) 

would update the various contracts and 

forms that, in conjunction with OCC’s 

By-Laws and Rules, establish and 

govern the relationship between OCC 

and each clearing member (collectively, 

the ‘‘Clearing Member Documents’’). 

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 

This proposed rule change would 

amend the Clearing Member Documents 

in order to: (i) Reduce the number of 

documents by eliminating outdated 

documents and combining similar 

documents, when possible; (ii) reflect 

OCC’s current business and operational 

processes; and (iii) reflect changes in 

applicable law and conform the 

documents to OCC’s current By-Laws 

and Rules. The proposed changes to the 

Clearing Member Documents would not 

alter any of the requirements for initial 

or continued OCC clearing membership. 

Background 

The Clearing Member Documents, in 

conjunction with OCC’s By-Laws and 

Rules, establish the relationship 

between OCC and each clearing member 

and serve as the legal foundation of 

OCC’s ongoing legal and operational 

relationship with clearing members. 

OCC recently completed a 

comprehensive review (the ‘‘Review’’) 

of the Clearing Membership Documents 

with a view to revising the documents 

and ensuring that they are consistent 

with OCC’s By-Laws and Rules and 

current operational processes. 

The Clearing Member Documents fall 

into five general categories: 

1. Application Documents. These are 

the primary documents used to identify 

an applicant’s qualifications to become 

a clearing member of OCC. 

2. Core Agreements. These documents 

establish the contractual agreement 

between OCC and a clearing member 

and provide OCC with authority to carry 

out critical tasks related to clearing 

membership. These include, among 

other agreements, the Clearing Member 

Agreement and various authorizations 

to draft and authorized signature forms. 

3. Services Agreements. These 

documents govern the provision by OCC 

of various services to clearing members, 

such as internet and data distribution 

services. 

4. Appointment Forms. These 

documents permit clearing members 

that are not participants in National 

Securities Clearing Corporation 

(‘‘NSCC’’) and the Fixed Income 

Clearing Corporation (‘‘FICC’’) to, as 

applicable, effect settlement of 

physically-settled equity options, single 

stock futures and Treasury securities 

option contracts through appointment of 

another clearing member as its agent 

with respect to settlement of the 

relevant product.5

5. Product and Account Specific 

Forms. These documents facilitate a 

clearing member’s ability to clear 

certain products or allow a clearing 

member to establish certain types of 

accounts such as a market maker subaccount. 

Proposed Updates to the Clearing 

Member Documents 

A primary focus of the Review was to 

eliminate outdated documents and 

consolidate documents when possible. 

The Review resulted in the number of 

distinct Clearing Member Documents 

being reduced from 39 to 21, either by 

eliminating documents that are no 

longer operationally required by OCC or 

by consolidating and streamlining 

previously distinct documents, each 

requiring separate execution, into one 

document. Attached as Exhibit 3 is a 

document that lists each of the current 

Clearing Member Documents and each 

of the proposed Clearing Member 

Documents after the consolidation and 

streamlining effort of the Review. 

Moreover, the Review did not result in 

any new substantive legal requirements 

being imposed upon clearing members. 

In addition, a significant number of 

the Clearing Member Documents are 

proposed to be updated to reflect terms 

used in OCC’s By-Laws and Rules that 

have been revised since the Clearing 

Member Documents were created or last 

updated, as applicable. Set forth below 

is a summary of the significant updates 

proposed to be made to the Clearing 

Member Documents. The proposed 

revisions to the Clearing Member 

Documents will not result in any 

substantive changes to OCC’s 

membership requirements. 

Application Documents 

OCC proposes to revise the 

Application Documents to eliminate 

sole proprietorship from the category of 

applicants 6 because OCC staff deemed 

it extremely unlikely that a sole 

proprietor would apply for clearing 

membership. The Application for 

Membership itself would be updated to 

include new categories of products an 


tkelley on DSK3SPTVN1PROD with NOTICES