Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Notices 77079 

24See id.; see also proposed Exchange Rule 

6.60(a). 

25See proposed Exchange Rule 6.60(a)(3); see also 

Notice, supra note 3, at 67489. The Exchange also 

proposes to capitalize the term ‘‘limit order’’ as 

used in Exchange Rule 6.60(a)(4)(D) to conform 

with the use of that term in the rest of the rule. See 

id. at 67489–67490. 

26See proposed Exchange Rule 6.37(b)(1)(E); see 

also Notice, supra note 3, at 67489. 

27 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

28 15 U.S.C. 78f(b)(5). 

29See Notice, supra note 3, at 67490; see also 

supra note 22. 

30 15 U.S.C. 78s(b)(2). 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

Rule 6.60(a) to delete the terms 

‘‘inbound’’ and ‘‘incoming’’ where 

currently used in the rule because Trade 

Collar Protection applies to resting 

orders as well as inbound or incoming 

orders.24 The Exchange also proposes to 

delete the reference in Exchange Rule 

6.60(a)(3) to the cancellation of IOC 

Orders, AON Orders, FOK Orders and 

NOW Orders if not immediately 

executed, as AON orders do not cancel 

if they are not immediately executed.25

Finally, the Exchange proposes to 

amend Exchange Rule 6.37(b)(1)(E) to 

rectify a typographical error—Exchange 

Rule 6.37(b)(1)(E) states that the bid-ask 

differential should be no more than $1 

when the last bid is $20.10 or more, but 

the rule should refer instead to a last bid 

of $20.01 or more.26

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.27 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,28 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

The Commission notes that the 

Exchange believes that the proposal 

assists with the maintenance of fair and 

orderly markets and protects investors 

by correcting inaccurate language in 

Exchange Rule 6.60(a) and clarifying the 

existing Trade Collar Protection 

functionality so that market participants 

can better understand how the Exchange 

handles certain orders in times of 

market dislocation. In addition, the 

Commission notes that the Exchange 

believes that the proposed functionality 

of the Trade Collar Protection 

components is consistent with the Act. 

In particular, the Exchange believes that 

its proposal to base Trading Collar 

values on the NBB for buy orders and 

the NBO for sell orders could remove 

impediments to and perfect the 

mechanism of a free and open market by 

using a benchmark from which a market 

participant would most likely derive its 

price.29

The Commission believes that the 

operation of the Trade Collar Protection 

mechanism set forth in the proposal is 

consistent with the Act. In addition, the 

Commission believes that the revised 

description of this mechanism should 

increase transparency with respect to 

how the mechanism operates and 

enhance investors’ understanding of 

how the mechanism may affect their 

orders in certain market conditions. 

Accordingly, the Commission believes 

that the proposal is reasonably designed 

to help prevent fraudulent and 

manipulative acts and practices, 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, protect 

investors and the public interest. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,30 that the 

proposed rule change (SR–NYSEArca– 

2014–14) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29971 Filed 12–22–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73863; File No. SR–FINRA– 

2014–051] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating to In Concert 

Reporting of Options Positions 

December 17, 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 December 

11, 2014, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by 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 

FINRA is proposing to amend Rule 

2360(b)(5) regarding reporting of options 

positions to codify an existing 

requirement that the reporting rules 

apply to all accounts acting in concert, 

consistent with the application of the 

reporting rules of the options exchanges. 

Below is the text of the proposed rule 

change. Proposed new language is in 

italics; proposed deletions are in 

brackets. 

* * * * * 

2000. DUTIES AND CONFLICTS 

* * * * * 

2300. SPECIAL PRODUCTS 

* * * * * 

2360. Options 

(a) No Change. 

(b) Requirements 

(1) through (4) No Change. 

(5) Reporting of Options Positions 

(A)(i)a. Conventional Options 

Each member shall file or cause to be 

filed with FINRA a report with respect 

to each account in which the member 

has an interest, each account of a 

partner, officer, director or employee of 

such member, and each customer, nonmember broker, or non-member dealer 

account, which, acting alone or in 

concert, has established an aggregate 

position of 200 or more option contracts 

(whether long or short) of the put class 

and the call class on the same side of 

the market covering the same 

underlying security or index, combining 

for purposes of this subparagraph long 

positions in put options with short 

positions in call options and short 

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77080 Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Notices 

4FINRA Rule 2360(b)(5)(A)(i)a. provides that the 

reporting requirement for conventional index 

options only applies to an option that is based on 

an index that underlies, or is substantially similar 

to an index that underlies, a standardized index 

option. As a result, conventional index options 

based on customized indexes are not required to be 

reported. See Notice to Members 07–03 (January 

2007); and see also Securities Exchange Act Release 

No. 54755 (November 15, 2006), 71 FR 67675 

(November 22, 2006) (Order Approving File No. 

SR–NASD–2006–007). 

5As noted below, the reporting rules are meant 

to be uniform across the industry and thus FINRA’s 

rules only require access members to report 

standardized options positions to FINRA. If a firm 

is a member of the options exchange on which the 

standardized option trades, then the firm would 

report the LOPR to the exchange of which is a 

member. 

6FINRA Rule 2360(b)(3)(A) imposes a ceiling or 

position limit on the number of conventional and 

standardized equity options contracts in each class 

on the same side of the market (i.e., aggregating long 

calls and short puts or long puts and short calls) 

that can be held or written by a firm, a person 

associated with a firm, or a customer acting alone 

or in concert with others. 

7See, e.g., CBOE Rule 4.11, ISE Rule 412 and 

NYSE Arca Options Rule 6.8. The standards for the 

calculation of position limits for a particular 

underlying security are the same across the options 

exchanges. 

8See ISG Important Notice, Large Options 

Position Report (LOPR)/Mandatory Automated 

Reporting Requirement Notice dated May 1, 1991 

(‘‘ISG Notice’’). 

9See Large Options Positions Reporting (LOPR) 

Frequently Asked Questions (FAQs), FAQ #24 

available at http://www.optionsclearing.com/

components/docs/clearing/industry-services/lopr/

lopr_faqs.pdf. 

10See BATS Rule 18.10(a), CBOE Rule 4.13(a), 

NYSE Arca Rule 6.6(a), and NASDAQ OMX PHLX 

Rule 1003(a). 

11FINRA proposes to harmonize the reporting 

provision with the options exchanges for 

standardized options and clarify the requirement 

for conventional options to similarly ensure the 

report is accurately capturing the entire position to 

monitor for position limit purposes. 

positions in put options with long 

positions in call options, provided, 

however, that such reporting with 

respect to positions in conventional 

index options shall apply only to an 

option that is based on an index that 

underlies, or is substantially similar to 

an index that underlies, a standardized 

index option. 

b. Standardized Options 

Each member that conducts a 

business in standardized options but is 

not a member of the options exchange 

upon which the standardized options 

are listed and traded shall file or cause 

to be filed with FINRA a report with 

respect to each account in which the 

member has an interest, each account of 

a partner, officer, director or employee 

of such member, and each customer, 

non-member broker, or non-member 

dealer account, which, acting alone or 

in concert, has established an aggregate 

position of 200 or more option contracts 

(whether long or short) of the put class 

and the call class on the same side of 

the market covering the same 

underlying security or index, combining 

for purposes of this subparagraph long 

positions in put options with short 

positions in call options and short 

positions in put options with long 

positions in call options. 

(ii) No Change. 

(B) No Change. 

(6) through (24) No Change. 

(c) No Change. 

••• Supplementary Material: 

————— 

.01 through .03 No Change. 

* * * * * 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FINRA 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. FINRA 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 

FINRA Rule 2360(b)(5) requires that 

members file, or cause to be filed, 

reports for each account that has an 

aggregate position of 200 or more 

options contracts (whether long or 

short) on the same side of the market 

covering the same underlying security 

or index. These reports are referred to as 

Large Options Position Reports 

(‘‘LOPRs’’). All LOPRs are filed 

electronically and The Options Clearing 

Corporation (‘‘OCC’’) currently hosts 

and maintains the LOPR reporting 

system. FINRA Rule 2360(b)(5)(A)(i)a. 

sets forth the requirements for the LOPR 

for conventional options.4 FINRA Rule 

2360(b)(5)(A)(i)b. sets forth the 

requirements for the LOPR for 

standardized options by members that 

are not members of the options 

exchange upon which the standardized 

options are listed (so called ‘‘access 

members’’).5 Among other things, the 

LOPRs allow FINRA to confirm that 

firms have not exceeded the options 

position limits set forth in FINRA Rule 

2360(b)(3).6 The position limit 

requirements are uniform across the 

options exchanges and FINRA.7

The position limit rules require that 

all accounts acting in concert, by the 

same individual or entity, must be 

aggregated to ensure position limit 

compliance. Accordingly, the position 

report should also be based on when 

accounts acting in concert exceeds the 

200 contract threshold. This would 

ensure the report is accurately capturing 

the entire position to monitor for 

position limit purposes. The options 

exchanges and FINRA acting through 

the Intermarket Surveillance Group (the 

‘‘ISG’’) outlined this requirement in a 

May 1, 1991 Notice.8 In addition, the 

LOPR Frequently Asked Questions 

(‘‘FAQs’’) maintained on the OCC’s site 

that are updated by the ISG members, 

including FINRA, outline the 

requirement that the ‘‘[m]embers must 

report any account or accounts acting 

‘‘in concert’’ that hold over 200 

contracts on either the long call/short 

put (bullish) or the short call/long put 

(bearish) side of the market.’’ 9 Like the 

position limit rules, the reporting rules 

and requirements are meant to be 

uniform across the industry. 

Certain options exchanges rules are 

explicit about the requirement to report 

a position whether acting alone or in 

concert,10 while FINRA and other 

options exchanges rules have by 

interpretation and relying on the ISG 

Notice and LOPR FAQs required firms 

to report such information. FINRA 

proposes to amend Rule 

2360(b)(5)(A)(i)a. and b.11 to codify the 

existing requirement that members must 

report each account in which the 

member has an interest, each account of 

a partner, officer, director or employee 

of such member, and each customer, 

non-member broker, or non-member 

dealer account which, acting alone or in 

concert, has established an aggregate 

position of 200 or more option 

contracts. FINRA believes that firms are 

already complying with this 

requirement as it has been a stated 

FINRA interpretation since May 1991. 

FINRA believes that harmonizing its 

rule with those options exchanges rules 

that are explicit about the in concert 

requirement will clarify firms reporting 

requirements and ensure continued 

consistency in monitoring for position 

limits. 

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the SEC waive the 

requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, so FINRA can 

implement the proposed rule change 

immediately. 

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Federal Register / Vol. 79, No. 246 / Tuesday, December 23, 2014 / Notices 77081 

12 15 U.S.C. 78o–3(b)(6). 

13 15 U.S.C. 78s(b)(3)(A). 

14 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. 15 17 CFR 200.30–3(a)(12). 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,12 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that 

clarifying that members must report 

options position reports for accounts of 

members, each account of a partner, 

officer, director or employee of such 

member, and each customer, nonmember broker, or non-member dealer 

acting alone or in concert with others is 

necessary to fully and effectively 

monitor compliance with the position 

limit requirements, which are based on 

similar standards. In addition, FINRA 

believes that the proposed rule change 

will promote consistent regulation by 

harmonizing FINRA’s rules with those 

of the options exchanges. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. FINRA 

believes that clarifying that members 

must report options position reports for 

accounts of members, each account of a 

partner, officer, director or employee of 

such member, and each customer, nonmember broker, or non-member dealer 

acting alone or in concert with others is 

necessary to fully and effectively 

monitor compliance with the position 

limit requirements. This proposed rule 

change reflects existing FINRA and ISG 

interpretation, which has been express 

since 1991 and is widely understood by 

firms. In addition, FINRA believes that 

the proposed rule change will promote 

consistent regulation by harmonizing 

FINRA’s rules with those of the options 

exchanges and thus will impose no 

burden on members since such reports 

are already being filed. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received from 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 13 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.14

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

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– 

FINRA–2014–051 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–FINRA–2014–051. 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 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of 

FINRA. 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–FINRA–2014–051 and 

should be submitted on or before 

January 13, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29965 Filed 12–22–14; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #14199 and #14200] 

New York Disaster #NY–00151 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of New York dated 12/15/ 

2014. 

Incident: Severe winter storms. 

Incident Period: 11/19/2014 through

11/26/2014. 

Effective Date: 12/15/2014. 

Physical Loan Application Deadline 

Date: 02/13/2015. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 09/15/2015. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing And 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW., Suite 6050, 

Washington, DC 20416. 

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