Federal Register / Vol. 79, No. 250 / Wednesday, December 31, 2014 / Notices 78927 

24 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)(2). 

5The Commission notes that Exhibit 5 is attached 

to the filing, not to this Notice. 

6 15 U.S.C. 78q–1(b)(3)(D). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–30588 Filed 12–30–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73929; File No. SR–NSCC– 

2014–13] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Addendum A 

(Fee Structure) With Respect to Fees 

Related to NSCC’s Obligation 

Warehouse Service 

December 23, 2014. 

Pursuant to section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (‘‘Act’’) 

and Rule 19b–4 2 thereunder, notice is 

hereby given that on December 17, 2014, 

National Securities Clearing Corporation 

(‘‘NSCC’’) 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 NSCC. 

NSCC filed the proposed rule change 

pursuant to section 19(b)(3)(A) 3 of the 

Act and Rule 19b–4(f)(2) 4 thereunder. 

The proposed rule change 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. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change consists of 

amendments to Addendum A of the 

Rules & Procedures (‘‘Rules’’) of NSCC 

in order to adjust certain fees related to 

NSCC’s Obligation Warehouse service, 

as more fully described below. 

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. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

The purpose of the proposed rule 

change is to revise NSCC’s fee schedule 

(as listed in Addendum A of the Rules) 

in order to adjust certain fees related to 

NSCC’s Obligation Warehouse (‘‘OW’’), 

a non-guaranteed, automated service 

that tracks, stores, and maintains 

unsettled ex-clearing and failed 

obligations, as well as obligations exited 

from NSCC’s Continuous Net Settlement 

(‘‘CNS’’) system, non-CNS Automated 

Customer Account Transfer Service 

(‘‘ACATS’’) Receive and Deliver 

Instructions, Balance Orders, and 

Special Trades, as such terms are 

defined in the Rules. The OW service 

provides transparency, serves as a 

central storage of open (i.e. failed or 

unsettled) broker-to-broker obligations, 

and allows users to manage and resolve 

exceptions in an efficient and timely 

manner. 

Currently, NSCC charges a fee to the 

recipient of a delivery notification 

request advisory, which informs the 

recipient that the submitting party has 

acknowledged that an OW obligation 

between those parties has settled, if that 

notification is aged two days or older 

(‘‘Aged Delivery Advisories’’); and also 

charges a fee to the recipient of a 

pending cancel request advisory, which 

requests that the recipient cancel a 

previously compared OW obligation, if 

that request is aged two days or older 

(‘‘Aged Cancel Advisories’’). NSCC is 

proposing to revise its fee schedule to 

increase the fees charged for Aged 

Delivery Advisories and Aged Cancel 

Advisories as marked on Exhibit 5 

hereto.5 The increase in these fees 

would encourage more timely action by 

the recipients of these advisories, and 

would align the fees associated with the 

OW service with the costs of delivering 

that service to NSCC’s Members. NSCC 

also proposes to remove notations in 

Addendum A related to the phased-in 

implementation for fees charged for 

each pending comparison advisory that 

are aged 5 days or older. 

The proposed rule change is marked 

on Exhibit 5 hereto as amendments to 

Addendum A to NSCC’s Rules. No other 

changes to the Rules are contemplated 

by this proposed rule change. The 

proposed fee change would take effect 

on January 1, 2015. 

2. Statutory Basis 

The proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder, in particular section 

17A(b)(3)(D) of the Act,6 which requires 

that the Rules provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its participants. 

The proposed rule change would align 

NSCC’s fees with the costs of delivering 

services to NSCC Members, and would 

allocate those fees equitably among the 

NSCC Members that use those services. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

NSCC does not believe that the 

proposed rule change would have any 

impact, or impose any burden, on 

competition. As stated above, the 

proposed change would align NSCC’s 

fees with the costs of delivering services 

to its Members, and would not 

disproportionally impact any NSCC 

Members. 

(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 received by NSCC. 

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) 7 of the Act and paragraph (f) 

of Rule 19b–4 8 thereunder. 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: 

mstockstill on DSK4VPTVN1PROD with NOTICES

78928 Federal Register / Vol. 79, No. 250 / Wednesday, December 31, 2014 / Notices 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 If the LMM is not quoting at the NBBO, or the 

LMM is quoting at the NBBO but for less size than 

the incoming order of five contracts or fewer, any 

remaining balance of the incoming order will be 

matched against orders and quotes in the Display 

Order Process in the order of their ranking. 

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–2014–13 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–2014–13. 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 NSCC and on DTCC’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– 

2014–13 and should be submitted on or 

before January 21, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Brent J. Fields, 

Secretary. 

[FR Doc. 2014–30591 Filed 12–30–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73928; File No. SR– 

NYSEARCA–2014–145] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Rule 6.76A by 

Revising the Order Allocation 

Methodology for Certain Orders of Five 

Contracts or Fewer 

December 23, 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 

22, 2014, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II 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 

Rule 6.76A by revising the order 

allocation methodology for certain 

orders of five contracts or fewer. The 

text of the proposed rule change is 

available on the Exchange’s Web site at 

www.nyse.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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Rules 6.76A by revising the order 

allocation methodology for certain 

orders of five (5) contracts or fewer. As 

proposed, for all incoming orders of five 

contracts or fewer the Lead Market 

Maker (‘‘LMM’’) would be allocated the 

full contract size up to the size of the 

LMM’s quote, provided the LMM is 

quoting at the NBBO and there is no 

Customer interest at the same price 

ranked ahead of the LMM. 

Rule 6.76A sets forth the priority for 

the allocation of incoming orders 

against bids and offers in the Display 

Order Process at a particular price in the 

NYSE Arca System (‘‘System’’). 

Specifically, pursuant to Rule 

6.76A(a)(1)(A), if there is an LMM 

quoting at the NBBO, and there is no 

Customer interest ranked ahead of the 

LMM, nor is the incoming order a 

Directed Order, the incoming order will 

be matched against the quote of the 

LMM for either: (a) An amount equal to 

40% of the incoming order up to the 

LMM’s disseminated quote size; or (b) 

the LMM’s share in the order of ranking, 

whichever is greater. Generally 

speaking, this means an LMM receives 

a guaranteed 40% trade allocation on 

any incoming order provided the LMM 

is quoting at the NBBO, and there is no 

Customer interest ranked ahead of the 

LMM. 

The Exchange is proposing to revise 

the order allocation methodology to 

provide that if the LMM is entitled to an 

allocation pursuant to Rule 

6.76A(a)(1)(A) and the entire contract 

size of the incoming order is five (5) 

contracts or fewer, the LMM would be 

allocated the full contract size up to the 

size of the LMM’s quote. As proposed, 

Rule 6.76A(1)(B) would state, ‘‘If the 

LMM is entitled to an allocation 

pursuant to (a)(1)(A) above, for all 

incoming orders of five (5) contracts or 

fewer, the LMM will be allocated the 

full contract size up to the size of the 

LMM’s quote.’’ This proposed change 

would affect only those incoming orders 

of five contacts or fewer. The Exchange 

notes that the proposed rule is only 

available if the LMM is entitled to an 

allocation, which means that if there is 

Customer interest at the same price 

ranked ahead of the LMM, such 

Customer interest would continue to 

have priority, even for executions of five 

contracts or fewer. In addition, an LMM 

must be quoting at the NBBO to be 

entitled to trade with orders of five 

contracts or fewer.3 The Exchange is not 

proposing any changes to the order 

mstockstill on DSK4VPTVN1PROD with NOTICES