73924 Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 

14 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. 73441 

(October 27, 2014), 79 FR 64862. 

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

5 15 U.S.C. 78s(b)(2)(A)(ii)(I). 

6 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. 34–73451 

(Oct. 28, 2014), 79 FR 65280 (Nov. 3, 2014) (SR– 

ICC–2014–17). 

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 Number SR– 

NYSEMKT–2014–99 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–2014–99. 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 20549–1090 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–2014–99 and should be 

submitted on or before January 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29103 Filed 12–11–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73791; File No. SR–Phlx– 

2014–66] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Designation of Longer Period for 

Commission Action on Proposed Rule 

Change To Adopt New Exchange Rule 

1081, Solicitation Mechanism, To 

Introduce a New Electronic Solicitation 

Mechanism 

December 8, 2014. 

On October 14, 2014, NASDAQ OMX 

PHLX LLC (‘‘Phlx’’ or ‘‘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 to adopt new Exchange Rule 

1081, Solicitation Mechanism, to 

introduce a new electronic solicitation 

mechanism pursuant to which a 

member can electronically submit all-ornone orders of 500 contracts or more (or, 

in the case of mini options, 5000 

contracts or more) the member 

represents as agent against contra orders 

the member solicited. The proposed rule 

change was published for comment in 

the Federal Register on October 31, 

2014.3 The Commission has received no 

comment letters on the proposal. 

Section 19(b)(2) of the Act 4 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 December 15, 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 consider and take action on the 

Exchange’s proposed rule change. 

Accordingly, pursuant to Section 

19(b)(2)(A)(ii)(I) of the Act 5 and for the 

reasons stated above, the Commission 

designates January 29, 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–Phlx–2014–66). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29182 Filed 12–11–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73790; File No. SR–ICC– 

2014–17] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Order Granting 

Approval of Proposed Rule Change To 

Revise ICC End-of-Day Price Discovery 

Policies and Procedures 

December 8, 2014. 

I. Introduction 

On October 17, 2014, ICE Clear Credit 

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

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change SR–ICC–2014–17 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 November 3, 

2014.3 The Commission received no 

comment letters regarding the proposed 

change. For the reasons discussed 

below, the Commission is granting 

approval of the proposed rule change. 

II. Description of the Proposed Rule 

Change 

ICC is proposing this change to revise 

the ICC End-of-Day Price Discovery 

Policies and Procedures to incorporate 

enhancements to its price discovery 

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Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 73925 

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. 

8 15 U.S.C. 78s(b)(2). 

9 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition and capital formation. 15 

U.S.C. 78c(f). 

10 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer, or any person associated 

with a registered broker or dealer, that has been 

admitted to membership in the Exchange. A 

Member will have the status of a ‘‘member’’ of the 

Exchange as that term is defined in Section 3(a)(3) 

of the Act.’’ See Exchange Rule 1.5(n). 

process. This revision does not require 

any changes to the ICC Clearing Rules. 

According to ICC, it utilizes a ‘‘cross 

and lock’’ algorithm as part of its price 

discovery process. As described by ICC, 

under this algorithm, bids and offers 

derived from Clearing Participant 

(‘‘CP’’) submissions are matched by 

sorting them from highest to lowest and 

lowest to highest levels, respectively. 

This sorting process pairs the CP 

submitting the highest bid price with 

the CP submitting the lowest offer price, 

the CP submitting the second highest 

bid price with the CP submitting the 

second-lowest offer price, and so on. 

The algorithm then identifies crossed 

and/or locked markets. Crossed markets 

are the Clearing Participant pairs 

generated by the sorting and ranking 

process for which the bid price of one 

Clearing Participant is above the offer 

price of the matched Clearing 

Participant. The algorithm identifies 

locked markets, where the bid and the 

offer are equal, in a similar fashion. The 

mid-point of the first non-crossed, nonlocked matched market is, as stated by 

ICC, the final end-of-day level (with 

additional steps taken to remove offmarket submissions from influencing 

the final level). According to ICC, this 

process captures the market dynamics of 

trading; however, final pricing levels are 

ultimately determined by a single bid 

and a single offer, which results in the 

ability for one submission to influence 

the outcome. 

ICC proposes enhancements to its 

methodology to improve the consistency 

of prices and reduce the sensitivity of 

the final level to a single Clearing 

Participant’s submission. ICC states that 

under the new ‘‘cross and lock’’ 

methodology, the average of the midpoints of all non-crossed, non-locked 

matched markets that are less than or 

equal to one bid-offer width is used as 

the final level (with additional steps 

taken to remove off-market submissions 

from influencing the final level). ICC 

states that, as a result, prices are less 

sensitive to outlying submissions. ICC 

also proposes additional language in the 

ICC End-of-Day Price Discovery Policies 

and Procedures to clarify existing 

policies and practices, including, but 

not limited to, language to clarify the 

existing pricing methodology’s 

treatment of identical crossed or locked 

matched market bids or offers. 

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 

Section 17A of the Act 6 and the rules 

thereunder applicable to ICC. The 

revised ICC End-of-Day Price Discovery 

Policies and Procedures will reduce the 

sensitivity of the final price level to a 

single Clearing Participant’s submission, 

resulting in more consistent day-overday end-of-day levels. The proposed 

rule change is therefore reasonably 

expected to provide a pricing 

methodology to more accurately reflect 

the market level. As such, the 

Commission believes that the changes 

will promote the prompt and accurate 

settlement of securities and derivatives 

transactions, and therefore are 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to ICC, in 

particular, Section 17(A)(b)(3)(F). 

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 7

and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (File No. SR–ICC– 

2014–17) be, and hereby is, approved.9

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29181 Filed 12–11–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73781; File No. SR–EDGA– 

2014–31] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Fees for Use 

of EDGA Exchange, Inc. 

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, EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) 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 

by the Exchange. The Exchange has 

designated the proposed rule change as 

one establishing or changing a member 

due, fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change 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 

The Exchange filed a proposal to 

amend the fee schedule applicable to 

Members 5 of the Exchange pursuant to 

EDGA Rules 15.1(a) and (c) (‘‘Fee 

Schedule’’). Changes to the fee schedule 

pursuant to this proposal are effective 

upon filing. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.directedge.com, at the 

principal office of the Exchange, and at 

mstockstill on DSK4VPTVN1PROD with NOTICES