73916 Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 

8 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

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

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). 

of publication of notice in the Federal 

Register. 

As discussed above, OCC filed 

Amendment No. 1 to describe the 

proposed change to Article IV, Section 

1 of OCC’s By-Laws to reflect OCC’s 

Board of Directors’ decision that the 

President should not be a Management 

Director. Specifically, OCC is amending 

Article IV, Section 1 of its By-Laws to 

refer only to the Executive Chairman, 

and not the President, as a Management 

Director. Amendment No. 1 provides 

the Commission with clarifying 

information about how OCC is 

implementing and providing 

transparency about the Transition Plan. 

By allowing OCC to implement the 

proposed changes, as amended, on an 

accelerated basis, OCC will be able to 

implement the Transition Plan sooner, 

which should allow OCC to manage and 

govern OCC more efficiently and 

effectively. 

Accordingly, the Commission finds 

good cause to approve the proposed rule 

change, as modified by Amendment No. 

1, on an accelerated basis. 

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– 

OCC–2014–18 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–OCC–2014–18. 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 OCC. 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–OCC– 

2014–18 and should be submitted on or 

before January 2, 2015. 

V. 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 

proposed rule change (SR–OCC–2014– 

18), as modified by Amendment No. 1, 

be, and it hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29110 Filed 12–11–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73782; File No. SR–EDGX– 

2014–32] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Fees for Use 

of EDGX 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 

26, 2014, EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) 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 Act 3 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 

EDGX 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 

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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Fee Schedule to amend: (i) The criteria 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 73917 

6Exchange Rule 11.21(a) defines a ‘‘Retail Order,’’ 

in part, as an: (i) An agency order or riskless 

principal order that meets the criteria of FINRA 

Rule 5320.03 that originates from a natural person; 

(ii) is submitted to EDGX by a Member, provided 

that no change is made to the terms of the order; 

and (iii) the order does not originate from a trading 

algorithm or any other computerized methodology. 

7ADV is defined in the Exchange’s Fee Schedule 

‘‘as the average daily volume of shares that a 

Member executed on, or routed by, the Exchange for 

the month in which the fees are calculated. ADV 

is calculated on a monthly basis, excluding shares 

on any day that the Exchange’s system experiences 

a disruption that lasts for more than 60 minutes 

during Regular Trading Hours (‘Exchange System 

Disruption’), on any day with a scheduled early 

market close and on the last Friday in June (the 

‘Russell Reconstitution Day’).’’ 

8TCV is defined in the Exchange’s Fee Schedule 

‘‘as the volume reported by all exchanges and trade 

reporting facilities to the consolidated transaction 

reporting plans for Tapes A, B and C securities for 

the month in which the fees are calculated, 

excluding volume on any day that the Exchange 

experiences an Exchange System Disruption, on any 

day with a scheduled early market close or the 

Russell Reconstitution Day.’’ 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(4). 

11See Concept Release on Equity Market 

Structure, Securities Exchange Act Release No. 

61358 (January 14, 2010), 75 FR 3594 (January 21, 

2010) (noting that dark pools and internalizing 

broker-dealers executed approximately 25.4% of 

share volume in September 2009). See also Mary L. 

Schapiro, Strengthening Our Equity Market 

Structure (Speech at the Economic Club of New 

York, Sept. 7, 2010) (available on the Commission’s 

Web site). In her speech, Chairman Schapiro noted 

that nearly 30 percent of volume in U.S.-listed 

equities was executed in venues that do not display 

their liquidity or make it generally available to the 

public and the percentage was increasing nearly 

every month. 

for the Retail Order Tier under Footnote 

4; and (ii) the first two bullets regarding 

added and removal flags under the 

General Notes section to include Flags 

EA, ER, and 5, which include in [sic] 

internalized volume. 

Retail Order Tier 

The Exchange currently provides a 

rebate of $0.0032 per share for Retail 

Orders 6 that yield Flag ZA and add 

liquidity. The Exchange currently offers 

a Retail Order Tier under Footnote 4 

whereby Members are provided a rebate 

of $0.0034 per share if they: (i) Add an 

Average Daily Volume 7 (‘‘ADV’’) of 

Retail Orders yielding Flag ZA that is 

0.10% or more of the Total Consolidated 

Volume 8 (‘‘TCV’’) on a daily basis, 

measured monthly; and (ii) have an 

‘‘added liquidity’’ to ‘‘added to removed 

liquidity’’ ratio of at least 85%. The 

Exchange proposes to ease the criteria to 

satisfy this tier by: (i) Lowering the 

requirement that a Member have an 

average daily volume of Retail Orders of 

0.10% or more of the TCV on a daily 

basis, measured monthly, to 0.07% or 

more of the TCV on a daily basis, 

measured monthly; and (ii) deleting the 

requirement that a Member have an 

‘‘added liquidity’’ to ‘‘added to removed 

liquidity’’ ratio of at least 85%. The 

Exchange believes easing the criteria to 

satisfy the Retail Order Tier will attract 

more Retail Orders to the Exchange. 

Added and Removal Flags 

The General Notes section of the Fee 

Schedule includes two bullets that 

contain the list of applicable ‘‘added 

flags’’ and ‘‘removal flags’’ that may be 

considered when calculating whether a 

Member satisfied a certain pricing tier. 

The Exchange appends Flags EA, ER, 

and 5 to orders that inadvertently match 

against each other and share the same 

MPID (Member shares both sides of the 

trade). The Exchange proposes to amend 

the first bullet regarding added flags to 

include Flag EA, which covers 

internalized trades that add liquidity. 

The Exchange also proposes to amend 

the second bullet regarding removal 

flags to include Flag ER, which covers 

internalized trades that remove 

liquidity. Lastly, the Exchange proposes 

to amend both the first and second 

bullets to include Flag 5, which covers 

internalized trades that add or remove 

liquidity during the pre and post market 

sessions. The Exchange also proposes to 

add Footnote 10 to state that a Member’s 

monthly volume attributed to Flag 5 

will be divided evenly between the 

added flags and removal flags when 

determining whether that Member 

satisfied a certain tier. The Exchange 

proposes to divide a Member’s Flag 5 

volume as such because the Exchange’s 

systems cannot currently delineate 

orders yielding Flag 5 that added from 

those that removed liquidity for 

purposes of determining whether a 

Member satisfies a certain tier. 

Implementation Date 

The Exchange proposes to implement 

these amendments to its Fee Schedule 

on December 1, 2014. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,9

in general, and furthers the objectives of 

Section 6(b)(4),10 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its Members and 

other persons using its facilities. The 

Exchange also notes that it operates in 

a highly-competitive market in which 

market participants can readily direct 

order flow to competing venues if they 

deem fee levels at a particular venue to 

be excessive. The proposed rule change 

reflects a competitive pricing structure 

designed to incent market participants 

to direct their order flow to the 

Exchange. The Exchange believes that 

the proposed rates are equitable and 

non-discriminatory in that they apply 

uniformly to all Members. The 

Exchange believes the fees and credits 

remain competitive with those charged 

by other venues and therefore continue 

to be reasonable and equitably allocated 

to Members. 

Retail Order Tier 

The Exchange believes that easing the 

criteria required to achieve the Retail 

Order Tier is reasonable, equitable and 

not unfairly discriminatory because it 

would continue to encourage Members 

to send additional Retail Orders that 

add liquidity to the Exchange for 

execution in order to qualify for an 

incrementally higher rebate for such 

executions that add liquidity. The 

potential for increased volume from 

Retail Orders would increase potential 

revenue to the Exchange, and allow the 

Exchange to spread its administrative 

and infrastructure costs over a greater 

number of shares, leading to lower per 

share costs. These lower per share costs 

in turn would allow the Exchange to 

pass on the savings to Members in the 

form of lower fees. The increased 

liquidity benefits all investors by 

deepening EDGX’s liquidity pool, 

offering additional flexibility for all 

investors to enjoy cost savings, 

supporting the quality of price 

discovery, promoting market 

transparency and improving investor 

protection. The Exchange notes that a 

significant percentage of the orders of 

individual investors are executed overthe-counter.11 The Exchange believes 

that it is thus appropriate to continue to 

create a financial incentive to bring 

more retail order flow to a public 

market, such as the Exchange, over offexchange venues. The Exchange 

believes that investor protection and 

transparency is promoted by rewarding 

displayed liquidity on exchanges over 

off-exchange executions. In this regard, 

the Exchange believes that maintaining 

or increasing the proportion of Retail 

Orders in exchange-listed securities that 

are executed on a registered national 

securities exchange (rather than relying 

on certain available off-exchange 

execution methods) would contribute to 

investors’ confidence in the fairness of 

their transactions and would benefit all 

investors by deepening the Exchange’s 

liquidity pool, supporting the quality of 

price discovery, promoting market 

mstockstill on DSK4VPTVN1PROD with NOTICES

73918 Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 

12See for example, the Market Depth Tier 1 

Rebate ($0.00325 per share rebate), Mega Step-Up 

Tier Rebate ($0.0032 per share), Ultra Tier rebate 

($0.0031 per share rebate), and Investor Tier rebate 

($0.0032 per share rebate) that are all tied to a 

percentage of TCV. 

13See Securities Exchange Act Release No. 69134 

(March 14, 2013), 78 FR 17247 (March 20, 2013) 

(SR–NYSEArca–2013–24). See also, NYSE Arca 

Equities, Inc., Schedule of Fees and Charges for 

Exchange Services, https://usequities.nyx.com/

sites/usequities.nyx.com/files/nyse_arca_

marketplace_fees_3_1_13.pdf. 

14See Securities Exchange Act Release No. 73648 

(November 19, 2014) (SR–Nasdaq–2014–108). See 

also Nasdaq Price List available at http://nasdaq

trader.com/Trader.aspx?id=PriceListTrading2. 

15See NYSE Arca, NYSE Arca Equities Trading 

Fees—Retail Order Tier, available at http://

usequities.nyx.com/markets/nyse-arca-equities/

trading-fees (last visited June 27, 2013). See also 

Nasdaq, Price List—Rebate to Add Displayed 

Designated Retail Liquidity, available at http://

www.nasdaqtrader.com/Trader.aspx?id=PriceList

Trading2 (last visited June 27, 2013). 

16See supra note 14. 

transparency and improving investor 

protection. 

The Exchange believes that reducing 

the percentage of TCV required to 

achieve the Retail Order Tier from 

0.10% to 0.07% for Members’ Retail 

Orders that add liquidity (Flag ZA) is 

reasonable, equitable and not unfairly 

discriminatory because this percentage 

continues to be within a range that the 

Exchange believes would incentivize 

Members to submit Retail Orders to the 

Exchange in order to qualify for the 

applicable rebate of $0.0034 per share. 

The Exchange notes that certain other 

existing pricing tiers within its Fee 

Schedule make rebates available to 

Members that are also based on the 

Member’s level of activity as a 

percentage of TCV. These existing 

percentage thresholds, depending on 

other related factors and the level of the 

corresponding rebates, are both higher 

and lower [sic] than the 0.07% proposed 

herein.12

The Exchange also notes that the 

revisions to the Retail Order Tier, 

including removing the requirement 

that Members have an ‘‘added liquidity’’ 

to ‘‘added to removed liquidity’’ ratio of 

at least 85%, are reasonable in that 

NYSE Arca, Inc. (‘‘NYSE Arca’’) offers a 

comparable Retail Order Tier (with an 

analogous Retail Order definition) that 

provides a rebate of $0.0033 per share 

for its Retail Orders that provide 

liquidity on NYSE Arca in Tapes A, B 

and C securities for ETP Holders that 

execute an ADV of Retail Orders that is 

0.20% or more of the TCV with no 

additional criteria.13 In addition, The 

NASDAQ Stock Market LLC (‘‘Nasdaq’’) 

recently proposed to offer its members 

a rebate of $0.0034 per share for 

Designated Retail Orders, as defined by 

Nasdaq, where the member adds 

Customer and/or Professional liquidity 

in Penny Pilot Options and/or NonPenny Pilot Options of 1.40% or more 

of national customer volume in 

multiply-listed equity and ETF options 

classes in a month as pursuant to 

Chapter XV, Section 2 of the Nasdaq 

Options Market rules.14 Moreover, like 

existing pricing on the Exchange and 

the NYSE that are tied to Member’s 

volume levels as a percentage of TCV, 

the proposed Retail Order Tier 

continues to be equitable and not 

unfairly discriminatory because it is 

available to all Members on an equal 

and non-discriminatory basis. 

Added and Removal Flags 

The Exchange believes that its 

proposal to amend two bullets under the 

General Notes section of the Fee 

Schedule that contain the list of 

applicable ‘‘added flags’’ and ‘‘removal 

flags’’ are [sic] represents an equitable 

allocation of reasonable dues, fees, and 

other charges among Members and other 

persons using its facilities. The 

Exchange appends Flag EA, ER, and 5 

to buy and sell orders that inadvertently 

match against each other and share the 

same MPID (Member shares both sides 

of the trade). The Exchange also believes 

proposed Footnote 10 stating that a 

Member’s monthly volume attributed to 

Flag 5 will be divided evenly between 

the added flags and removal flags when 

determining whether that Member 

satisfied a certain tier represents an 

equitable allocation of reasonable dues, 

fees, and other charges. The Exchange 

proposes to divide a Member’s Flag 5 

volume as such because Flag 5 includes 

both added and removed liquidity 

because the Exchange’s systems cannot 

currently delineate orders yielding Flag 

5 that added from those that removed 

liquidity purposes of determining 

whether a Member satisfies a certain 

tier. The Exchange believes that 

Members orders that yield Flags EA, ER, 

or 5 should be included in the 

calculation of the ADV threshold as 

added or removal flags for purposes of 

determining whether a tier’s criteria has 

been met. Including such Flags would 

be a reasonable means to encourage 

Members to direct their orders to the 

Exchange because they would have 

certainty that certain orders will not be 

excluded from their ADV calculations 

because it inadvertently matched 

against an order sharing the same MPID. 

Lastly, the Exchange also believes that 

the proposed amendment is nondiscriminatory because it applies 

uniformly to all Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

These proposed rule changes do not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The Exchange does not believe that any 

of these changes represent a significant 

departure from previous pricing offered 

by the Exchange or pricing offered by 

the Exchange’s competitors. 

Additionally, Members may opt to 

disfavor EDGX’s pricing if they believe 

that alternatives offer them better value. 

Accordingly, the Exchange does not 

believe that the proposed changes will 

impair the ability of Members or 

competing venues to maintain their 

competitive standing in the financial 

markets. 

Retail Order Tier 

Regarding the Retail Order Tier, the 

Exchange believes that its proposal to 

amend the criteria to achieve the tier 

will increase intermarket competition 

for Retail Orders because the proposed 

Retail Order Tier is comparable in price 

and criteria to NYSE Arca and Nasdaq’s 

retail order tier.15 In addition, the 

proposed rule change is in direct 

response to Nasdaq recently 

implementing a rebate for retail orders 

of $0.0034 per share where the member 

adds Customer and/or Professional 

liquidity in Penny Pilot Options and/or 

Non-Penny Pilot Options of 1.40% or 

more of national customer volume in 

multiply-listed equity and ETF options 

classes in a month as pursuant to 

Chapter XV, Section 2 of the Nasdaq 

Options Market rules.16 The Exchange 

believes that its proposal would neither 

increase nor decrease intramarket 

competition because the Retail Order 

Tier would continue to apply uniformly 

to all Members and the ability of some 

Members to meet the Retail Order Tier 

would only benefit other Members by 

contributing to increased retail liquidity 

on the Exchange. 

Added and Removal Flags 

The Exchange believes that adding 

orders yielding Flags EA, ER, and 5 to 

the ‘‘added flags’’ and ‘‘removal flags’’ 

would increase intermarket competition 

because it would encourage Members to 

direct their orders to the Exchange 

because they would have certainty that 

their orders will not be excluded from 

their ADV calculations because it 

inadvertently matched against an order 

sharing the same MPID. The Exchange 

believes that its proposal would neither 

increase nor decrease intramarket 

competition because the added and 

removal flags would continue to apply 

uniformly to all Members and the ability 

of some Members to meet the tiers 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 73919 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f). 

19 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). 

would only benefit other Members by 

contributing to increased liquidity and 

improve market quality at the Exchange. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

Members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 17 and paragraph (f) of Rule 

19b–4 thereunder.18 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– 

EDGX–2014–32 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–EDGX–2014–32. 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–EDGX– 

2014–32, and should be submitted on or 

before January 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29108 Filed 12–11–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73776; File No. SR–CME– 

2014–29] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Make Clarifying Changes to 

CME Rule 814 and CME Rule 901 

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 26, 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 filing a proposed rule change 

that is limited to its business as a 

derivatives clearing organization. More 

specifically, the proposed rule change 

would make amendments to CME Rule 

814 and CME Rule 901 to specify the 

time at which a settlement bank 

becomes responsible to the clearing 

house to perform variation margin 

settlement and the point during the 

clearing cycle at which a clearing 

member’s obligations to the clearing 

house cease. The proposed revisions 

would not modify clearing house 

operations but merely clarify to the 

marketplace the clearing cycle currently 

in place. 

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 derivatives 

clearing organization with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and operates a 

substantial business clearing futures and 

swaps contracts subject to the 

jurisdiction of the CFTC. CME is 

proposing to make amendments to CME 

Rule 814 and CME Rule 901 to specify 

the time at which a settlement bank 

becomes responsible to the clearing 

house to perform variation margin 

settlement and the point during the 

clearing cycle at which a clearing 

member’s obligations to the clearing 

house cease. The proposed revisions 

would not modify clearing house 

operations but merely clarify to the 

marketplace the clearing cycle currently 

in place. CME notes that it has also 

made a corresponding filing with the 

CFTC, in Submission No. 14–280, 

regarding the proposed changes. 

mstockstill on DSK4VPTVN1PROD with NOTICES