69166 Federal Register / Vol. 79, No. 224 / Thursday, November 20, 2014 / Notices 

35See Securities Exchange Act Release No. 73102 

(September 15, 2014), 79 FR 56419 (September 19, 

2014). 36 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). 

30, 2014.35 On October 29, 2014, the 

Exchange withdrew the initial proposed 

rule change. The points raised by the 

Themis Letter and Shatto Letter are 

either not responsive to the issues raised 

in the proposal or aimed at existing 

elements of U.S. market structure that 

have been previously approved by the 

Commission. 

The thrust of the SIFMA Letter is 

aimed at the proposed fees which are 

being removed from this proposed rule 

change and are to be filed with the 

Commission via a separate rule filing. 

While the SIFMA Letter correctly states 

that the Exchange has marketed the 

BATS One Feed since August 1, 2014, 

the SIFMA Letter incorrectly asserts that 

the Exchange has offered the BATS One 

Feed since that same date. All of the 

Exchange’s marketing materials have 

included statements that the BATS One 

Feed’s implementation was pending to 

SEC approval, and at no point has the 

Exchange offered the BATS One product 

for any use other than for testing and 

certification. 

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 of such date (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 Exchange 

consents, the Commission shall: 

(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– 

BYX–2014–030 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–BYX–2014–030. 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 the 

filing also will be available for 

inspection and copying at the principal 

office of BYX. 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–BYX– 

2014–030 and should be submitted on 

or before December 11, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.36

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27443 Filed 11–19–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73607; File No. SR–CME– 

2014–43] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change in Connection With the 

Acceptance of USD Malaysian Palm 

Olein Calendar (Cleared Only) 

Contracts for Clearing 

November 14, 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 6, 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 would add rules 

related to the acceptance of the USD 

Malaysian Palm Olein Calendar (Cleared 

Only) Contract for clearing. 

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 change that is the subject 

of this filing is limited to CME’s 

business as a DCO offering clearing 

services for CFTC-regulated swaps 

products. More specifically, the 

proposed rule change is related to 

CME’s initial listing of the USD 

Malaysian Palm Olein Calendar Swap 

(Cleared Only) for clearing. 


rmajette on DSK2VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 224 / Thursday, November 20, 2014 / Notices 69167 

5 15 U.S.C. 78q–1. 

6 15 U.S.C. 78q–1(b)(3)(F). 

7 15 U.S.C. 78q–1. 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(4)(ii). 

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

11 17 CFR 240.19b–4(f)(4)(ii). 

The USD Malaysian Palm Olein 

Calendar Swaps would fit within a 

subset of one or more groups, categories, 

types, or classes of CFTC-regulated 

swaps that CME already accepts for 

clearing. For example, CME currently 

accepts for clearing physical-commodity 

calendar swaps that financially-settle to 

a commercially-acceptable, publiclyaccessible and timely disseminated 

price series including the following: 

CME USD Malaysian Crude Palm Oil 

Calendar Swap (CPC); CBOT Wheat 

Calendar Swap (WCS); CBOT Corn 

Calendar Swap (CCS); CBOT Soybean 

Calendar Swap (SNS); and the CBOT KC 

HRW Wheat Calendar Swap (KWS). 

The proposed new rules include a 

new product Chapter 204B in the CME 

rulebook. New rule 204B00 would 

specify that the USD Malaysian Palm 

Olein Calendar Swaps listed by CME 

would be for clearing-only, would be 

available only to ‘‘eligible contract 

participants’’ as defined in Section 

1a(18) of the Commodity Exchange Act, 

and would be subject to the applicable 

provisions of the CME rulebook. New 

Rule 204B01 would lay out the various 

contract specifications of the USD 

Malaysian Palm Olein Calendar Swaps 

including, the unit of clearing, hours for 

clearing entry, minimum price 

increments, months cleared, position 

limits, last day of clearing, and 

liquidation during the delivery month. 

The proposed contracts would be 

liquidated by cash settlement as set 

forth in proposed Rule 204B02. Clearing 

members holding open positions in USD 

Malaysian Palm Olein Calendar Swaps 

at the time of termination of clearing 

would be required to make payment to 

and receive payment through CME in 

accordance with normal variation 

settlement procedures based on a 

settlement price equal to the final 

settlement price (as described in Rule 

204B03.). As specified in proposed Rule 

204B03, the final settlement price for 

the contracts would be determined 

through use of a third party service 

provider, i.e., the cumulative average of 

each Thomson Reuters ‘‘Malaysia RBD 

Palm Olein’’ third forward month 

closing time assessment for each 

business day of the contract month. 

Rule 204B04 specifies that daily 

settlement prices shall be generated 

each business day the CME is open 

using the most recent available 

Thomson Reuters values. Under 

proposed rule 204B05, the final 

settlement day for the proposed 

contracts would be on the last CME 

business day of the swap contract 

month. Under proposed rule 204B06, all 

disputes between interested parties may 

be settled by CME arbitration. Finally, 

proposed new rule 204B07 sets out 

CME’s disclaimer regarding limitations 

of liability. 

The changes that are described in this 

filing are limited to listing the new USD 

Malaysian Palm Olein Calendar Swaps. 

The proposed changes are therefore 

limited to CME’s business as a DCO 

clearing products under the exclusive 

jurisdiction of the CFTC and do not 

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 change that is the subject 

of this filing to its primary regulator, the 

Commodity Futures Trading 

Commission (‘‘CFTC’’), in a separate 

filing, CME Submission No. 14–254. 

The text of the CME proposed rule 

amendments is attached, with additions 

underlined and deletions in brackets. 

CME believes the proposed rule 

change is consistent with the 

requirements of the Act including 

Section 17A of the Act.5 CME is 

proposing the amendments to facilitate 

the listing of a new clearing-only 

physical-commodity calendar swap that 

financially-settles to a commerciallyacceptable, publicly-accessible and 

timely disseminated price series. The 

addition of this new derivative product 

is 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.6

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 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 7 and are 

properly filed under Section 

19(b)(3)(A) 8 and Rule 19b–4(f)(4)(ii) 9

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 

CME would simply facilitate the listing 

of a new clearing-only physicalcommodity calendar swap. 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) 10 of the Act and Rule 19b– 

4(f)(4)(ii) 11 thereunder. At any time 

within 60 days of the filing of the 


rmajette on DSK2VPTVN1PROD with NOTICES
69168 Federal Register / Vol. 79, No. 224 / Thursday, November 20, 2014 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term Market Maker refers to ‘‘Competitive 

Market Makers’’ and ‘‘Primary Market Makers’’ 

collectively. Market Makers orders sent to the 

Exchange by an Electronic Access Member are 

assessed fees and rebates at the same level as 

Market Maker orders. See footnote 2, Schedule of 

Fees, Section I and II. 

4 ‘‘Penny Symbols’’ are options overlying all 

symbols listed on ISE Gemini that are in the Penny 

Pilot Program. 

5 ‘‘Non-Penny Symbols’’ are options overlying all 

symbols excluding Penny Symbols. 

6A Tier 2 member is a member that executes a 

Total Affiliated Member ADV of 50,000 to 124,999 

contracts, Priority Customer Maker ADV of 20,000 

to 49,999 contracts, or a Total Affiliated Member 

ADV of 40,000 to 99,999 contracts with a minimum 

Priority Customer Maker ADV of 15,000 contracts. 

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, 

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–2014–43 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–2014–43. 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 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–2014–43 and should 

be submitted on or before December 11, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27452 Filed 11–19–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73600; File No. SR– 

ISEGemini–2014–28] 

Self-Regulatory Organizations; ISE 

Gemini, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Schedule 

of Fees 

November 14, 2014. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

3, 2014, ISE Gemini, LLC (the 

‘‘Exchange’’ or ‘‘ISE Gemini’’) 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 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 the Substance 

of the Proposed Rule Change 

ISE Gemini is proposing to amend its 

Schedule of Fees to introduce a new 

higher maker rebate for certain Market 

Maker orders. The text of the proposed 

rule change is available on the 

Exchange’s Internet Web site at http://

www.ise.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 

self-regulatory organization 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 the Schedule of Fees 

to introduce a new higher maker rebate 

for certain Market Maker 3 orders. The 

Exchange’s Schedule of Fees has 

separate tables for fees applicable to 

Standard Options and Mini Options. 

The Exchange notes that while the 

discussion below relates to fees for 

Standard Options, the fees for Mini 

Options, which are not discussed below, 

are and shall continue to be 1/10th of 

the fees for Standard Options. 

Currently, Market Maker orders that 

add liquidity on ISE Gemini are 

provided a maker rebate in Penny 

Symbols 4 and SPY of $0.30 per contract 

for Tier 1, $0.32 per contract for Tier 2, 

$0.34 per contract for Tier 3, $0.37 per 

contract for Tier 4, and $0.38 per 

contract for Tier 5. In Non-Penny 

Symbols 5 this maker rebate is $0.40 per 

contract for Tier 1, $0.42 per contract for 

Tier 2, and $0.44 per contract for Tier 

3, $0.47 per contract for Tier 4, and 

$0.49 per contract for Tier 5. In order to 

incentivize Market Makers to quote 

more aggressively on ISE Gemini, the 

Exchange now proposes to provide a 

higher maker rebate to Tier 2 members 

that meet an additional average daily 

volume (‘‘ADV’’) threshold with respect 

to Market Maker orders executed in a 

given month.6 In particular, Market 

Makers that achieve Tier 2 and execute 

an ADV of 100,000 to 124,999 contracts 

in a given month, including both maker 

and taker volume, will qualify for a 

maker rebate of $0.33 per contract in 

Penny Symbols and SPY, and $0.43 per 

contract in Non-Penny Symbols. 


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