Federal Register / Vol. 79, No. 225 / Friday, November 21, 2014 / Notices 69545 

23 15 U.S.C. 78s(b)(3)(A). 

24 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

25 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). 

obtain trading information regarding 

trading in the Shares, exchange-listed 

options on U.S. Treasury futures 

contracts, exchange-listed U.S. Treasury 

futures contracts, exchange-listed 

options on Eurodollar futures contracts, 

exchange-listed Eurodollar futures 

contracts, and exchange-listed currency 

options from such markets and other 

entities. In addition, the Exchange may 

obtain information regarding trading in 

the Shares, exchange-listed options on 

U.S. Treasury futures contracts, 

exchange-listed U.S. Treasury futures 

contracts, exchange-listed options on 

Eurodollar futures contracts, exchangelisted Eurodollar futures contracts, and 

exchange-listed currency options from 

markets and other entities that are 

members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement. At least 

90% of the Fund’s net assets that are 

invested in exchange-listed options on 

U.S. Treasury futures contracts, 

exchange-listed U.S. Treasury futures 

contracts, exchange-listed options on 

Eurodollar futures contracts, exchangelisted Eurodollar futures contracts, and 

exchange-listed currency options will be 

invested in such instruments whose 

principal market is a member of the ISG. 

In addition, as indicated in the Prior 

Release, investors will have ready 

access to information regarding the 

Fund’s holdings, the PIV (as defined in 

the Prior Release), the Disclosed 

Portfolio (as defined in the Prior Release 

and as further described herein), and 

quotation and last sale information for 

the Shares. 

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 will permit the Sub-Adviser 

additional flexibility in achieving the 

Fund’s investment objective, thereby 

offering investors additional investment 

options. 

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 

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, 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) 

of the Act 23 and Rule 19b–4(f)(6)(iii) 

thereunder.24

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. 

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–2014–127 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–NYSEArca–2014–127. 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 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– 

NYSEArca–2014–127 and should be 

submitted on or before December 12, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27570 Filed 11–20–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73615; File No. SR–CME– 

2014–49] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Regarding Decision Not To 

Clear Security-Based Swaps 

November 17, 2014. 

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule 

19b–4 thereunder,2 notice is hereby 

given that on November 17, 2014, 

Chicago Mercantile Exchange Inc. 

(‘‘CME Inc.’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I and II 

below, which Items have been prepared 

primarily by CME Inc. CME Inc. filed 

the proposal pursuant to Section 

19(b)(3)(A) of the Act 3 and Rule 19b– 

4(f)(6) 4 thereunder, so that the proposal 

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69546 Federal Register / Vol. 79, No. 225 / Friday, November 21, 2014 / Notices 

5CME Inc.’s decision not to clear SBS is subject 

to the limited exception of clearing Restructuring 

European Single Name CDS Contracts, as more fully 

detailed below. All references herein to CME Inc.’s 

decision not to clear SBS should be read/

understood in this context. 

6CME Inc. plans to launch clearing services for 

iTraxx Europe index CDS products and will file a 

separate proposed rule change with the 

Commission in connection with its iTraxx proposal. 

7CME Inc. will provide further details 

surrounding the clearing of iTraxx Europe index 

CDS, and Restructuring European Single Name CDS 

Contracts specifically, in a separate iTraxx rule 

filing. 

8 15 U.S.C. 78q–1. 

9 15 U.S.C. 78q–1(b)(3)(F). 

10See Securities Exchange Act Release No. 34– 

69284 (April 9, 2013), 78 FR 21046 (April 9, 2013). 

11See Securities Exchange Act Release No. 34– 

64832 (July 7, 2011), 76 FR 41056 (July 13, 2011). 

12 15 U.S.C. 78s(b)(3)(A)(iii). 

13 17 CFR 240.19b–4(f)(6). 

14 15 U.S.C. 78s(b)(3)(A)(iii). 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6). 

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 Inc. is filing the proposed rule 

change that is limited to its business as 

a derivatives clearing organization. 

More specifically, the proposed rule 

change clarifies that CME Inc. has 

decided not to clear security-based 

swaps (‘‘SBSs’’).5 As a result, CME Inc. 

is removing references in Chapter 8–H 

(Credit Default Swaps Clearing) to SBSs. 

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 Inc. included statements 

concerning the purpose 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 Inc. 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 

CME Inc. is registered as a derivatives 

clearing organization with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and currently 

offers clearing services for many 

different futures and swaps products. To 

date, CME Inc. has never performed the 

functions of a clearing agency with 

respect to SBSs. This proposed rule 

change is designed to make explicit that 

CME Inc. has decided not to clear SBSs. 

As a result of the above decision, CME 

Inc. is proposing to amend Rule 8H01 to 

explicitly state that CME Inc. will not 

clear SBSs, with the exception of 

Restructuring European Single Name 

CDS Contracts created following the 

occurrence of a Restructuring Credit 

Event in respect of an iTraxx 

Component Transaction.6 The clearing 

of Restructuring European Single Name 

CDS Contracts will be a necessary 

byproduct after such time that CME Inc. 

begins clearing iTraxx Europe index 

CDS. As currently contemplated, CME 

Inc. will not permit market participants 

to increase, close out (other than due to 

the occurrence of a credit event) or 

otherwise affect the size of a position in 

a Restructuring European Single Name 

CDS Contract.7

Additionally, to remove references to 

SBSs, CME Inc. will accordingly amend 

or delete Rules 8H04 (CDS Clearing 

Member Obligations and 

Qualifications), 8H820 (Performance 

Bond for Security-Based Swaps), 

8H930.C (Acceptable Performance Bond 

Deposits for CDS Products), 8H931 

(Rule Changes Relating to SecurityBased Swaps), 8H932 (Records Relating 

to Disciplinary Proceedings and 

Security-Based Swaps), 8H933 (Notice 

Regarding Certain Disciplinary Matters 

Related to Security-Based Swaps), 

8H934 (Reports to CDS Clearing 

Members), and 8H938 (Summary 

Suspensions Relating to Security-Based 

Swap Clearing Activities). 

CME Inc. believes the proposed rule 

change is consistent with the 

requirements of the Exchange Act, 

including Section 17A of the Exchange 

Act,8 in general, and furthers the 

objectives of Section 17A(b)(3)(F),9 in 

particular, in that it is designed to 

remove impediments to and perfect the 

mechanism of a national system for the 

prompt and accurate clearance and 

settlement of securities transactions, 

and in general, to protect investors and 

the public interest. The proposed rule 

change will provide adequate notice to 

the public that CME Inc. will not clear 

SBSs. Additionally, by deciding not to 

clear SBSs, CME Inc. believes that it 

will avoid subjecting non-security 

products to potentially ‘‘duplicative or 

inconsistent regulation’’ and will 

‘‘eliminate any potential inefficiencies 

and undue delays that could result from 

the requirement that the Commission 

review changes to rules primarily 

affecting clearing operations with 

respect to products that are not 

securities . . .’’ 10 As a result, CME Inc. 

believes that the proposed rule change 

is consistent with the Exchange Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CME Inc. does not believe that the 

proposed rule change will have any 

impact, or impose any burden, on 

competition. The proposed rule change 

merely makes explicit the fact that CME 

Inc. has decided not to clear SBSs. 

Because CME Inc. never performed, and 

will not perform, the functions of a 

clearing agency with respect to SBS, the 

proposed rule change will not affect any 

actual clearing activities of CME Inc. 

and should not have any burden on 

competition. In fact, CME Inc. believes 

that the proposed rule change will have 

a positive effect on competition since 

the proposal will result in the avoidance 

of ‘‘potential legal uncertainty and 

market disruption caused by delays that 

could result from the requirement that 

the Commission undertake a full 

review’’ of CME Inc.’s non-security 

products.11

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received from 

Members, Participants, or Others 

CME Inc. has not solicited, and does 

not intend to solicit, comments 

regarding this proposed rule change. 

CME Inc. has not received any 

unsolicited written comments from 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

CME Inc. has filed the proposed rule 

change pursuant to Section 

19(b)(3)(A)(iii) of the Act 12 and Rule 

19b–4(f)(6) 13 thereunder. 

Because the proposed rule change (i) 

does not significantly affect the 

protection of investors or the public 

interest, (ii) does not impose any 

significant burden on competition, and 

(iii) does not 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)(iii) of the Act 14 and Rule 

19b–4(f)(6) 15 thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 16 normally does not 

become operative prior to 30 days after 

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Federal Register / Vol. 79, No. 225 / Friday, November 21, 2014 / Notices 69547 

17 17 CFR 240.19b–4(f)(6)(iii). 

18Rule 19b–4(f)(6)(iii) requires a self-regulatory 

organization to submit to the Commission written 

notice of its intent to file the proposed rule change, 

along with a brief description and text of the 

proposed rule change, at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. 17 CFR 240.19b–4(f)(6)(iii). The 

Commission has waived the five-day pre-filing 

period in this case. 

19Solely for purposes of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73261 

(October 6, 2014), 79 FR 60226 (‘‘Notice’’). 

4See Letter from John Kinahan, Chief Executive 

Officer, Group One Trading, L.P., dated October 27, 

2014. 

5See Letter from Michael J. Simon, Secretary and 

General Counsel, International Securities Exchange, 

LLC, dated November 14, 2014. 

6 15 U.S.C. 78s(b)(2). 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),17 CME Inc. has 

asked the Commission to waive the fiveday pre-filing requirement and the 30- 

day operative delay so that the proposed 

rule change may become operative 

immediately upon filing.18 The 

Commission believes that waiver of the 

30-day operative delay is appropriate, as 

CME Inc. has, to date, never performed 

the functions of a clearing agency with 

respect to SBSs, and the rule text 

removed or altered as a result the 

proposed rule change removes any 

ambiguity concerning CME Inc.’s ability 

or desire to perform the functions of a 

clearing agency with respect to SBSs. 

Therefore, the Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest and 

designates the proposed rule change as 

operative upon filing.19

At any time within 60 days of the 

filing of the proposed 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 

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 No. SR– 

CME–2014–49 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–2014–49. 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 

office of CME Inc. and on CME Inc.’s 

Web site at http://www.cmegroup.com/

market-regulation/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–2014–49 and should 

be submitted on or before December 12, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27572 Filed 11–20–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73614; File No. SR–ISE– 

2014–43] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Designation of Longer 

Period for Commission Action on 

Proposed Rule Change Amending Its 

Information Barrier Rules 

November 17, 2014. 

On September 15, 2014, International 

Securities Exchange, LLC (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change 

amending its information barrier rules. 

The proposed rule change was 

published for comment in the Federal 

Register on October 6, 2014.3 The 

Commission received one comment 

letter 4 on the proposed rule change and 

one rebuttal letter from the Exchange.5

Section 19(b)(2) of the Act 6 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether these 

proposed rule changes should be 

disapproved. The 45th day for this filing 

is November 20, 2014. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to review the comment letter submitted 

in response to the Notice, to review the 

Exchange’s response to such comment 

letter, and to consider and take action 

on the Exchange’s proposed rule 

change. 

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