Federal Register / Vol. 80, No. 13 / Wednesday, January 21, 2015 / Notices 2983 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73703 

(December 4, 2014), 79 FR 72039. 

4See letter from Martha Redding, Chief Counsel, 

New York Stock Exchange, to Kevin M. O’Neill, 

Deputy Secretary, Commission, dated December 22, 

2014. 

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

6 Id. 

7 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4Public Law 111–203, 124 Stat. 1376 (2010). 

5See Securities Exchange Act Release No. 64795 

(July 1, 2011), 76 FR 39927 (July 7, 2011) (Order 

Granting Temporary Exemptions Under the 

Securities Exchange Act of 1934 in Connection 

With the Pending Revision of the Definition of 

‘‘Security’’ To Encompass Security-Based Swaps, 

and Request for Comment) (the ‘‘Exemptive 

Release’’). The term ‘‘security-based swap’’ is 

defined in Section 761 of the Dodd-Frank Act. See 

also Securities Exchange Act Release No. 67453 

(July 18, 2012), 77 FR 48207 (August 13, 2012) 

(Further Definition of ‘‘Swap,’’ ‘‘Security-Based 

Swap,’’ and ‘‘Security-Based Swap Agreement’’; 

Mixed Swaps; Security-Based Swap Agreement 

Recordkeeping). 

6See Securities Exchange Act Release No. 64884 

(July 14, 2011), 76 FR 42755 (July 19, 2011) (Notice 

of Filing and Immediate Effectiveness of Proposed 

Rule Change; File No. SR–FINRA–2011–033) 

(‘‘FINRA Rule 0180 Notice of Filing’’). See also 

Securities Exchange Act Release No. 71287 (January 

10, 2014), 79 FR 2924 (January 16, 2014) (Notice of 

Filing and Immediate Effectiveness of Proposed 

Rule Change; File No. SR–FINRA–2014–001) 

(extending the expiration date of FINRA Rule 0180 

to February 11, 2015). 

[FR Doc. 2015–00858 Filed 1–20–15; 8:45 am] 

BILLING CODE 8011–01–C 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74051; File No. SR–NYSE– 

2014–59] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change Amending Rule 13 and 

Related Rules Governing Order Types 

and Modifiers, as Modified by Partial 

Amendment No. 1 

January 14, 2015. 

On November 14, 2014, New York 

Stock Exchange LLC (‘‘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 amend Exchange Rule 13 and 

other Exchange rules governing order 

types and order modifiers. The 

proposed rule change was published in 

the Federal Register on December 4, 

2014.3 On December 22, 2014, the 

Exchange submitted Partial Amendment 

No. 1 to the Commission and filed the 

Partial Amendment No. 1 to the public 

comment file.4 The Commission has 

received no other comment on the 

proposal. 

Section 19(b)(2) of the Act 5 provides 

that, within 45 days of the publication 

of the 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 the proposed rule change 

should be disapproved. The 

Commission is extending this 45-day 

time period. 

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 the proposed 

rule change, as modified by Partial 

Amendment No. 1. Accordingly, the 

Commission, pursuant to Section 

19(b)(2) of the Act,6 designates March 4, 

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 Number SR– 

NYSE–2014–59). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00836 Filed 1–20–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74049; File No. SR–FINRA– 

2015–001] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Extend the Expiration 

Date of FINRA Rule 0180 (Application 

of Rules to Security-Based Swaps) 

January 14, 2015. 

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 January 7, 

2015, 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, II, 

and III 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 extend the 

expiration date of FINRA Rule 0180 

(Application of Rules to Security-Based 

Swaps) to February 11, 2016. FINRA 

Rule 0180 temporarily limits, with 

certain exceptions, the application of 

FINRA rules with respect to securitybased swaps. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

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 

On July 1, 2011, the SEC issued an 

Order granting temporary exemptive 

relief (the ‘‘Temporary Exemptions’’) 

from compliance with certain 

provisions of the Exchange Act in 

connection with the revision, pursuant 

to Title VII of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (the ‘‘Dodd-Frank Act’’),4 of the 

Exchange Act definition of ‘‘security’’ to 

encompass security-based swaps.5

Consistent with the Commission’s 

action, on July 8, 2011, FINRA filed for 

immediate effectiveness FINRA Rule 

0180,6 which, with certain exceptions, 

is intended to temporarily limit the 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
2984 Federal Register / Vol. 80, No. 13 / Wednesday, January 21, 2015 / Notices 

7The current FINRA rulebook consists of: (1) 

FINRA Rules; (2) NASD Rules; and (3) rules 

incorporated from NYSE (‘‘Incorporated NYSE 

Rules’’). While the NASD Rules generally apply to 

all FINRA members, the Incorporated NYSE Rules 

apply only to those members of FINRA that are also 

members of the NYSE. The FINRA Rules apply to 

all FINRA members, unless such rules have a more 

limited application by their terms. For more 

information about the rulebook consolidation 

process, see Information Notice, March 12, 2008 

(Rulebook Consolidation Process). 

8 In its Exemptive Release, the Commission noted 

that the relief is targeted and does not include, for 

instance, relief from the Act’s antifraud and antimanipulation provisions. FINRA has noted that 

FINRA Rule 0180 is similarly targeted. For instance, 

paragraph (a) of FINRA Rule 0180 provides that 

FINRA rules shall not apply to members’ activities 

and positions with respect to security-based swaps, 

except for FINRA Rules 2010 (Standards of 

Commercial Honor and Principles of Trade), 2020 

(Use of Manipulative, Deceptive or Other 

Fraudulent Devices), 3310 (Anti-Money Laundering 

Compliance Program) and 4240 (Margin 

Requirements for Credit Default Swaps). See also 

paragraphs (b) and (c) of FINRA Rule 0180 

(addressing the applicability of additional rules) 

and FINRA Rule 0180 Notice of Filing. 

9See Securities Exchange Act Release No. 71485 

(February 5, 2014), 79 FR 7731 (February 10, 2014) 

(Order Extending Temporary Exemptions Under the 

Securities Exchange Act of 1934 in Connection 

With the Revision of the Definition of ‘‘Security’’ 

to Encompass Security-Based Swaps, and Request 

for Comment) (‘‘Temporary Exemptions Extension 

Release’’) stating that, for those expiring Temporary 

Exemptions ‘‘that are not directly linked to pending 

security-based swap rulemakings, the Commission 

is extending the expiration date until the earlier of 

such time as the Commission issues an order or rule 

determining whether any continuing exemptive 

relief is appropriate for security-based swap 

activities with respect to any of these Exchange Act 

provisions or until three years following the 

effective date of this Order.’’ The Temporary 

Exemptions Extension Release further stated that 

for each expiring Temporary Exemption ‘‘that is 

related to pending security-based swap 

rulemakings, the Commission is extending the 

expiration date until the compliance date for the 

related security-based swap-specific rulemaking.’’ 

See also Securities Exchange Act Release No. 71482 

(February 5, 2014), 79 FR 7570 (February 10, 2014) 

(Extension of Exemptions for Security-Based 

Swaps) (extending the expiration dates in interim 

final rules that provide exemptions under the 

Securities Act of 1933 (the ‘‘Securities Act’’), the 

Exchange Act, and the Trust Indenture Act of 1939 

for those security-based swaps that prior to July 16, 

2011 were security-based swap agreements and are 

defined as ‘‘securities’’ under the Securities Act and 

the Exchange Act as of July 16, 2011 due solely to 

the provisions of Title VII of the Dodd-Frank Act). 

10See Securities Exchange Act Release No. 68864 

(February 7, 2013), 78 FR 10218 (February 13, 2013) 

(Order Extending Temporary Exemptions Under the 

Securities Exchange Act of 1934 in Connection 

With the Revision of the Definition of ‘‘Security’’ 

to Encompass Security-Based Swaps, and Request 

for Comment). 

11See note 6 supra. 

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). 

application of FINRA rules 7 with 

respect to security-based swaps, thereby 

helping to avoid undue market 

disruptions resulting from the change to 

the definition of ‘‘security’’ under the 

Act.8

The Commission, noting the need to 

avoid a potential unnecessary 

disruption to the security-based swap 

market in the absence of an extension of 

the Temporary Exemptions, and the 

need for additional time to consider the 

potential impact of the revision of the 

Exchange Act definition of ‘‘security’’ in 

light of ongoing Commission 

rulemaking efforts under Title VII of the 

Dodd-Frank Act, issued an Order which 

extended and refined the applicable 

expiration dates for the previously 

granted Temporary Exemptions.9 The 

Commission previously noted that 

extending the Temporary Exemptions 

would facilitate a coordinated 

consideration of these issues with the 

relief provided pursuant to FINRA Rule 

0180.10 In establishing Rule 0180, and 

in extending the rule’s expiration date, 

FINRA noted its intent, pending the 

implementation of any SEC rules and 

guidance that would provide greater 

regulatory clarity in relation to securitybased swap activities, to align the 

expiration date of FINRA Rule 0180 

with the termination of relevant 

provisions of the Temporary 

Exemptions.11

The Commission’s rulemaking and 

development of guidance in relation to 

security-based swap activities is 

ongoing. As such, FINRA believes it is 

appropriate and in the public interest, 

in light of the Commission’s goals as set 

forth in the Exemptive Release and the 

Temporary Exemptions Extension 

Release, to extend FINRA Rule 0180 for 

a limited period, to February 11, 2016, 

so as to avoid undue market disruptions 

resulting from the change to the 

definition of ‘‘security’’ under the Act. 

As noted in the FINRA Rule 0180 Notice 

of Filing, FINRA will amend the 

expiration date of Rule 0180 in 

subsequent filings as necessary such 

that the expiration date will be 

coterminous with the termination of 

relevant provisions of the Temporary 

Exemptions. 

FINRA has filed the proposed rule 

change for immediate effectiveness. 

FINRA is proposing that the 

implementation date of the proposed 

rule change will be February 11, 2015. 

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 the 

proposed rule change would further the 

purposes of the Act because, consistent 

with the goals set forth by the 

Commission in the Exemptive Release 

and in the Temporary Exemptions 

Extension Release, the proposed rule 

change will help to avoid undue market 

disruption that could result if FINRA 

Rule 0180 expires before the 

implementation of any SEC rules and 

guidance that would provide greater 

regulatory clarity in relation to securitybased swap activities. 

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 the proposed rule change 

would prevent undue market disruption 

that would otherwise result if securitybased swaps were, by virtue of the 

expansion of the Act’s definition of 

‘‘security’’ to encompass security-based 

swaps, subject to the application of all 

FINRA rules before the implementation 

of any SEC rules and guidance that 

would provide greater regulatory clarity 

in relation to security-based swap 

activities. FINRA believes that, by 

extending the expiration of FINRA Rule 

0180, the proposed rule change will 

serve to promote regulatory clarity and 

consistency, thereby reducing burdens 

on the marketplace and facilitating 

investor protection. 

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 Rule 19b– 

4(f)(6) 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 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 13 / Wednesday, January 21, 2015 / Notices 2985 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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–2015–001 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–2015-001. 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 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– 

2015–001 and should be submitted on 

or before February 11, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00834 Filed 1–20–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74053; File No. SR–ICC– 

2015–001] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change To Revise ICC 

End-of-Day Price Discovery Policies 

and Procedures 

January 14, 2015. 

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 January 5, 

2015, ICE Clear Credit LLC (‘‘ICC’’) 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 ICC. 

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 principal purpose of the 

proposed rule change is to revise the 

ICC End-of-Day Price Discovery Policies 

and Procedures to incorporate 

enhancements to its price discovery 

process. This revision does not require 

any changes to the ICC Rules. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, ICC 

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. ICC 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 

ICC proposes revising the ICC End-ofDay Price Discovery Policies and 

Procedures to incorporate 

enhancements to its price discovery 

process. 

ICC believes such revisions will 

facilitate the prompt and accurate 

clearance and settlement of securities 

transactions and derivative agreements, 

contracts, and transactions for which it 

is responsible. The proposed revisions 

are described in detail as follows. 

ICC currently utilizes a ‘‘cross and 

lock’’ algorithm as part of its price 

discovery process. Under this algorithm, 

standardized 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 secondlowest offer price, and so on. The 

algorithm then identifies crossed and/or 

locked markets. Crossed markets are the 

CP pairs generated by the sorting and 

ranking process for which the bid price 

of one CP is above the offer price of the 

matched CP. The algorithm identifies 

locked markets, where the bid and the 

offer are equal, in a similar fashion. 

Whenever there are crossed and/or 

locked matched markets, the algorithm 

applies a set of rules designed to 

identify standardized submissions that 

are ‘‘obvious errors.’’ The algorithm sets 

a high bid threshold equal to the 

preliminary end-of-day (‘‘EOD’’) level 

plus one EOD bid offer width (‘‘BOW’’), 

and a low offer threshold equal to the 

preliminary EOD level minus one EOD 

BOW. The algorithm considers a CP’s 

standardized submission to be an 

‘‘obvious error’’ if the bid is higher than 

the high bid threshold, or the offer is 

lower than the low offer threshold. 

CP pairs identified by the algorithm as 

crossed or locked markets are required 

from time to time, under the End-of-Day 

Price Discovery Policies and 

Procedures, to enter into cleared trades 

with each other as part of the ICC EOD 

price discovery process (‘‘Firm Trade’’). 

Currently, ICC excludes standardized 

submissions it identifies as obvious 

errors from Firm Trades and does not 

use these submissions in its 

determination of published EOD levels. 

ICC proposes implementing 

consequences for CPs providing price 

discovery submissions deemed to be 


asabaliauskas on DSK5VPTVN1PROD with NOTICES