73938 Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 

55 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

these DMMs must satisfy additional 

quoting and other obligations. 

The Exchange does not believe the 

proposed change will cause any 

unnecessary burden on inter-market 

competition because all market makers 

are entitled to receive participation 

entitlements provided they direct orders 

and those orders are executed by those 

DMMs. In addition, the Exchange 

believes that the proposed rule change 

will in fact promote competition. The 

Exchange believes allowing DMMs to 

receive participation entitlements will 

promote trading activity on the 

Exchange because it will provide 

incentives to DMMs to quote in series 

which they are not obligated to do so, 

to the benefit of the Exchange, its 

Members, and market participants. 

The Exchange does not believe that 

the method in which it rounds up or 

down to the nearest integer creates an 

undue burden on competition. The 

rounding outcome is not guaranteed and 

is only the result of necessity of 

allocating shares in a just, equitable and 

transparent manner to market 

participants. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date 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– 

BX–2014–049 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–2014–049. 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 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– 

2014–049, and should be submitted on 

or before January 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.55

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29109 Filed 12–11–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73779; File No. SR–NSCC– 

2014–12] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing of 

Proposed Rule Change to Amend 

NSCC’s Rules and Procedures in 

Connection with the Discontinuance of 

the Analytic Reporting Service 

December 8, 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 

25, 2014, National Securities Clearing 

Corporation (‘‘NSCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Item I, II and III 

below, which Items have been prepared 

by NSCC. 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 

The proposed rule change consists of 

amendments to Rule 57 (Insurance and 

Retirement Processing Services) and 

Addendum A (Fee Structure) of NSCC’s 

Rules & Procedures in connection with 

the discontinuance of the Analytic 

Reporting Service, as more fully 

described below. The text of the 

proposed rule change is available on 

NSCC’s Web site at http://

www.dtcc.com/legal/sec-rulefilings.aspx, at the principal office of 

NSCC, and at the Commission’s Public 

Reference Room. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, 

NSCC 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. NSCC has prepared 

summaries, set forth in sections A, B 

and C below, of the most significant 

aspects of such statements. 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 73939 

3Securities Exchange Act Release No. 63604 

(December 23, 2010), 75 FR 82115 (December 29, 

2010) (SR–NSCC–2010–18). 

4Securities Exchange Act Release No. 69824 

(June 21, 2013), 78 FR 38743 (June 27, 2013) (SR– 

NSCC–2013–08). 

5NSCC notes that IPS Data that constitutes 

‘‘Clearing Data’’ is and will be subject to the 

prohibitions, limitations and exceptions set forth in 

Rule 49 (Release of Clearing Data and Clearing Fund 

Data). In general, Rule 49 limits NSCC’s ability to 

release Clearing Data relating to transactions of a 

particular participant. Rule 49 defines ‘‘Clearing 

Data’’ as transaction data which is received by 

NSCC for inclusion in the clearance and/or 

settlement process of NSCC, or such data, reports 

or summaries thereof, which may be produced as 

a result of processing such transaction data. 

6 15 U.S.C. 78q–1(b)(3)(F). 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Statement of Purpose 

Background. In 2011, NSCC launched 

the Analytic Reporting Service 

(‘‘Service’’) as part of NSCC’s suite of 

insurance and retirement services.3 The 

Service gives subscribing NSCC 

members access to aggregated insurance 

products information, including 

benchmarking information and league 

tables (such aggregated information, 

collectively, ‘‘Analytics Data’’). The 

Analytics Data produced by the Service 

is primarily sourced from data and 

information transmitted to NSCC by its 

members in connection with NSCC’s 

other insurance and retirement service 

(‘‘IPS Data’’). In 2013, at members’ 

requests, NSCC enhanced the Service to 

among other things include, as source 

data for the Service, insurance 

transaction data processed outside of 

NSCC but submitted to NSCC for 

inclusion in the Service by its members 

and other third parties (‘‘Storage 

Data’’).4

Prior to implementation of the 

Service, the suite of insurance and 

retirement services consisted of 

transmission and receipt of IPS Data 

from one member to another, with 

NSCC merely serving as a conduit for 

such exchanges of information. With the 

implementation of the Service, NSCC 

began maintaining and storing IPS Data 

for purposes of creating Analytics Data. 

Proposed Rule Change. Since its 

launch, subscribers to the Service have 

been few, and presently, there are only 

12 members subscribing. As a result, 

NSCC is not recovering the costs of 

maintaining the Service. For this reason, 

NSCC proposes to amend Rule 57, 

Section 12 to eliminate the Service. All 

12 members have been notified of 

NSCC’s intention to discontinue the 

Service, and though some of the 

members have expressed 

disappointment that the Service is being 

discontinued, none have objected. 

Accordingly, NSCC will discontinue the 

Service effective the close of business 

on December 31, 2014, or if Commission 

approval is later than such date, 

immediately upon Commission 

approval. 

In addition, NSCC will amend 

Addendum A, to remove the fee 

structure applicable to the Service. 

As noted above, prior to 

implementation of the Service, NSCC 

did not maintain or store any IPS Data; 

it merely transmitted such data from 

one member to another. In connection 

with elimination of the Service, NSCC 

proposes to amend Rule 57, Section 1, 

to explicitly state that NSCC will 

maintain and store IPS Data transmitted 

to it by and between its members, which 

IPS Data has not otherwise been 

rejected, withdrawn or deleted pursuant 

to the provisions of Rule 57.5 NSCC 

shall also retain the right to evaluate the 

usefulness of such IPS Data, including 

by providing such IPS Data to third 

parties under appropriate agreements of 

confidentiality and to prohibit such 

third parties from using such IPS Data 

other than for evaluation of such IPS 

Data’s potential usefulness. Any 

proposed future use by NSCC of such 

stored and maintained IPS Data shall be 

subject to a proposed rule change filing 

with the Commission. With respect to 

Storage Data supplied to NSCC for 

inclusion in the Service, NSCC shall 

only retain such Storage Data in 

compliance with its data retention 

policy and shall dispose of all Storage 

Data in accordance with such policy. 

Storage Data shall not be stored or 

maintained for purposes of evaluation 

for future use by NSCC. 

2. Statutory Basis 

NSCC believes that the proposed rule 

change is consistent with the 

requirements of the Act, and the rules 

and regulations thereunder applicable to 

NSCC, in particular Section 17A(b)(3)(F) 

of the Act,6 which requires that NSCC’s 

Rules be designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions. 

Given the limited number of subscribers 

to the Service, NSCC has determined 

that it is not economically efficient to 

maintain the Service. As such, by 

identifying and eliminating a Service 

[sic] that is not economically efficient, 

NSCC can better apply its economic 

resources, which promotes the prompt 

and accurate clearance and settlement of 

securities transactions. Further, 

discontinuance of the Service will be 

implemented consistently with the 

safeguarding of securities and funds in 

NSCC’s custody or control or for which 

NSCC is responsible because the Service 

is strictly an information service; 

accordingly, discontinuance of the 

Service will neither directly nor 

indirectly affect NSCC’s safeguarding of 

securities or funds in its custody or 

control or for which it is responsible. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

NSCC does not believe that the 

proposed rule change will have any 

impact, or impose any burden on 

competition. 

(C) Clearing Agency’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 yet been 

solicited or received. NSCC will notify 

the Commission of any written 

comments when received by NSCC. 

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 a 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– 

NSCC–2014–12 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–NSCC–2014–12. This file 

mstockstill on DSK4VPTVN1PROD with NOTICES

73940 Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Pursuant to Section 31 of the Securities 

Exchange Act of 1934, CBOE pays transaction fees 

to the SEC based on the volume of securities that 

are executed on the Exchange. The Sales Value Fee 

is the mechanism by which CBOE assesses the 

transaction fees to each TPH. 

4Trading ended on CBSX on April 30, 2014. See 

Securities Exchange Act Release No. 34–71880 

(April 4, 2014) (Notice) (SR–CBOE–2014–036). 

5See Rule 6.49A. 

6The term ‘‘affiliate’’ of or a person ‘‘affiliated 

with’’ another person means a person who, directly 

or indirectly, controls, is controlled by, or is under 

common control with, such other person. See Rule 

1.1(j). 

The term ‘‘control’’ means the power to exercise 

a controlling influence over the management or 

policies of a person, unless such power is solely the 

result of an official position with such person. Any 

person who owns beneficially, directly or 

indirectly, more than 20% of the voting power in 

the election of directors of a corporation, or more 

than 25% of the voting power in the election of 

directors of any other corporation which directly or 

through one or more affiliates owns beneficially 

more than 25% of the voting power in the election 

of directors of such corporation, shall be presumed 

to control such corporation. See Rule 1.1(k). 

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 NSCC and on NSCC’s Web site 

at http://dtcc.com/legal/sec-rulefilings.aspx. 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–NSCC– 

2014–12 and should be submitted on or 

before January 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29105 Filed 12–11–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73788; File No. SR–CBOE– 

2014–089] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Revise the Sales 

Value Fee 

December 8, 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 

25, 2014, the Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) 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 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 its 

Fees Schedule. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http://

www.cboe.com/AboutCBOE/

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

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 

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 Exchange proposes to amend its 

Fees Schedule, effective November 28, 

2014. Specifically, the Exchange 

proposes to enable the Exchange to 

collect the Sales Value Fee 3 (the ‘‘Fee’’) 

directly from Trading Permit Holders 

(‘‘TPHs’’) when the Fee is due pursuant 

to an on-floor position transfer between 

unaffiliated TPHs. In addition, the 

Exchange proposes to remove obsolete 

language related to the CBOE Stock 

Exchange, LLC (‘‘CBSX’’).4 Finally, the 

Exchange proposes to remove the 

regulatory review process related to the 

Position Transfer Fee. 

Currently, the Sales Value Fee is 

collected indirectly from TPHs through 

their clearing firms by OCC on behalf of 

CBOE. The OCC does not collect the Fee 

when an on-floor position transfer 5

takes place. The Exchange is proposing 

to collect the Fee directly from TPHs 

when there is an on-floor position 

transfer between unaffiliated TPHs. 

TPHs will be considered affiliated if one 

of the TPHs has ‘‘control’’ under Rule 

1.1(k) over another TPH.6

In addition, the Fees Schedule 

currently indicates that the Fee is 

assessed by CBOE to each TPH for the 

sale of securities when a sale in nonoption securities occurs on CBSX with 

respect to which CBOE is obligated to 

pay a fee to the SEC under Section 31 

of the Exchange Act or a sell order in 

non-option securities that is routed for 

execution at a market other than on 

CBSX, resulting in a covered sale on 

that market and an obligation of the 

routing broker providing Routing 

Services for CBSX to pay the related 

sales fee of that market. As noted above, 

CBSX is no longer active; therefore, the 

Exchange proposes to clarify that the 

Fee will be assessed by CBOE to TPHs 

for sales of securities when a sale in 

option securities occurs with respect to 

which CBOE is obligated to pay a fee to 

the SEC under Section 31 of the 

Exchange Act or when a sell order in 

option securities is routed for execution 

at a market other than CBOE, resulting 

in a covered sale on that market and an 

obligation of the routing broker 

providing Routing Services for CBOE, as 

described in CBOE Rule 6.14B, to pay 

the related sales fee of that market. 

Finally, the Exchange currently 

provides a service to TPHs seeking to 

make an off-floor position transfer 

pursuant to Rule 6.49A whereby a TPH 

can solicit CBOE to perform a 

‘‘regulatory review’’ of the potential 

transfer to determine whether the 

proposed transfer meets the off-floor 

mstockstill on DSK4VPTVN1PROD with NOTICES