Federal Register / Vol. 79, No. 229 / Friday, November 28, 2014 / Notices 70903 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Rule 900.2NY (11) defining 

‘‘Clearing Member’’ as ‘‘an Exchange ATP Holder 

Continued 

provide that capital withdrawals by 

partners cannot be made without the 

prior written approval of the Exchange, 

that prospective member corporations 

submit an opinion of counsel reciting 

facts contained in its public filings, and 

that certain prohibitions have been 

made legally effective would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system by 

ensuring that potential member 

organizations, persons subject to the 

Exchange’s jurisdiction, regulators, and 

the public could more easily navigate 

the Exchange’s rulebook and better 

understand what obligations attach and 

when. Further, the Exchange represents 

that updating the Exchange’s rules to 

remove what the Exchange considers 

redundant requirements is also designed 

to protect investors as well as the public 

interest by providing transparency and 

reducing potential confusion regarding 

the Exchange membership process that 

may result from having what the 

Exchange characterizes as obsolete rules 

and outdated guidelines in the 

Exchange’s rulebook. For the same 

reasons, the Exchange represents that 

updating the Exchange’s rules to remove 

requirements that the Exchange 

considers outdated would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and is 

equally designed to protect investors as 

well as the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes that the proposed 

rule change would foster competition by 

expanding the types of organizational 

forms a member organization may take 

and, by removing geographic 

restrictions on corporate Exchange 

membership, permitting foreign brokerdealers that are members of FINRA or 

another SRO and that do not have their 

principal place of business in the 

United States to become Exchange 

member organizations. The Exchange 

represents that, by removing outdated 

and redundant provisions from the 

Exchange membership rules not found 

in the rules of other SROs and adding 

a provision found in the rules of another 

SRO, the proposed rule change also 

would foster competition by providing 

greater harmonization between 

Exchange membership requirements 

and the requirements of other SROs, 

resulting in less burdensome and more 

efficient and consistent standards for 

prospective member organizations. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or 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– 

NYSEMKT–2014–97 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–NYSEMKT–2014–97. 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 Section, 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 will also be available for 

inspection and copying at the NYSE’s 

principal office and on its Internet Web 

site at www.nyse.com. 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– 

NYSEMKT–2014–97 and should be 

submitted on or before December 19, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–28083 Filed 11–26–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73669; File No. SR– 

NYSEMKT–2014–81] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Designation of a 

Longer Period for Commission Action 

on a Proposed Rule Change, as 

Modified by Amendment No. 1 Thereto, 

Amending Rule 902.1NY To Authorize 

the Exchange To Share Any UserDesignated Risk Settings in Exchange 

Systems With the Clearing Member 

That Clears Transactions on Behalf of 

the User 

November 21, 2014. 

On September 19, 2014, NYSE MKT 

LLC, (‘‘NYSE MKT’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (the ‘‘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 to amend Rule 

902.1NY to authorize the Exchange to 

share any User-designated risk settings 

in Exchange systems with the Clearing 

Member 3 that clears transactions on 


tkelley on DSK3SPTVN1PROD with NOTICES
70904 Federal Register / Vol. 79, No. 229 / Friday, November 28, 2014 / Notices 

which has been admitted to membership in the 

Options Clearing Corporation pursuant to the 

provisions of the Rules of the Options Clearing 

Corporation.’’ 

4See Exchange Rule 900.2NY (87) defining 

‘‘User’’ as ‘‘any ATP Holder that is authorized to 

obtain access to the System pursuant to Rule 

902.1NY.’’ 

5See Securities Exchange Act Release No. 73280 

(October 1, 2014), 79 FR 60553. 

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

7On November 19, 2014, the Exchange consented 

to an extension of this time period until November 

29, 2014. See 15 U.S.C. 78s(b)(2)(A)(ii)(II). 

8 Id. 

9 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 34–73347 

(Oct. 14, 2014), 79 FR 62683 (Oct. 20, 2014) (SR– 

ICC–2014–16). 

4 15 U.S.C. 78s(b)(2)(C). 

5 15 U.S.C. 78q–1(b)(3)(F). 

6 15 U.S.C. 78q–1. 

7 15 U.S.C. 78q–1(b)(3)(F). 

8 15 U.S.C. 78q–1. 

9 15 U.S.C. 78s(b)(2). 

behalf of the User.4 The proposed rule 

change was published for comment in 

the Federal Register on October 7, 

2014.5 On November 19, 2014, the 

Exchange also submitted Amendment 

No. 1 to the proposed rule change. The 

Commission received one comment on 

the proposed rule change. 

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 the 

proposed rule change should be 

disapproved. The 45th day for this filing 

is November 21, 2014.7 The 

Commission is extending this 45-day 

time period. 

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider this proposed rule change. 

The proposed rule change, if approved, 

would authorize the Exchange to share 

any User-designated risk settings in 

Exchange systems with the Clearing 

Member that clears transactions on 

behalf of the User. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the Act,8

designates January 5, 2015, as the date 

by which the Commission should either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–NYSEMKT–2014–81). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–28082 Filed 11–26–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73666; File No. SR–ICC– 

2014–16] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Order Approving 

Proposed Rule Change Related to 

ICC’s Use of House Initial Margin as an 

Internal Liquidity Resource 

November 21, 2014. 

I. Introduction 

On October 1, 2014, ICE Clear Credit 

LLC (‘‘ICC’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change SR–ICC–2014–16 pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder.2 The proposed rule 

change was published for comment in 

the Federal Register on October 20, 

2014.3 The Commission did not receive 

comments on the proposed rule change. 

For the reasons discussed below, the 

Commission is approving the proposed 

rule change. 

II. Description of the Proposed Rule 

Change 

ICC has stated that the purpose of the 

proposed rule change is to amend ICC 

Clearing Rule 402(j) to provide further 

clarity regarding ICC’s obligation to 

return any Clearing Participant’s House 

Initial Margin used as an internal 

liquidity resource. Under Rule 402(j), 

ICC may, in connection with a Clearing 

Participant default, (i) exchange House 

Initial Margin held in the form of cash 

for securities of equivalent value and/or 

(ii) exchange House Initial Margin held 

in the form of cash in one currency for 

cash of equivalent value in a different 

currency. The proposed rule change 

clarifies that the exchanges involving a 

Clearing Participant’s Initial Margin in 

its House Account will occur on a 

temporary basis and that ICC will 

reverse any such exchange as soon as 

practicable following the conclusion of 

event which gave rise to the liquidity 

need. ICC states that the duration of the 

liquidity event will likely be 

significantly shorter than the amount of 

time necessary to complete the default 

management process for the event 

which gave rise to the liquidity need. 

The proposed rule change will also 

delete general references to ICC’s 

liquidity policies and procedures and 

instead will use the defined term ‘‘ICE 

Clear Credit Procedures’’ found 

throughout the ICC Rules. 

III. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act 4 directs 

the Commission to approve a proposed 

rule change of a self-regulatory 

organization if the Commission finds 

that such proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to such selfregulatory organization. Section 

17A(b)(3)(F) of the Act 5 requires, among 

other things, that the rules of a clearing 

agency are designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions 

and, to the extent applicable, derivative 

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. 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of Section 17A of the 

Act 6 and the rules and regulations 

thereunder applicable to ICC. The 

proposed modification to Rule 402(j) 

provides clarity regarding ICC’s 

obligation and timing to return any 

House Initial Margin used as an internal 

liquidity resource and is reasonably 

designed to allow ICC to manage its 

liquidity needs in the event of one or 

more Clearing Participant defaults. 

Accordingly, the Commission believes 

that the proposed rule change is 

reasonably designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions 

and, to the extent applicable, derivative 

agreements, contracts, and transactions, 

and 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, consistent 

with Section 17A(b)(3)(F) of the Act.7

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the Act 8

and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 


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