Federal Register / Vol. 80, No. 10 / Thursday, January 15, 2015 / Notices 2161 

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

6 15 U.S.C. 78q–1(b)(3)(F). 

7 17 CFR 240.17Ad–22(d)(8). 

8 15 U.S.C. 78q–1. 

9 15 U.S.C. 78q–1(b)(3)(F). 

10 17 CFR 240.17Ad–22(d)(8). 

11 15 U.S.C. 78q–1. 

12 15 U.S.C. 78s(b)(2). 

13 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). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Chairman’s normal vote as a committee 

member). 

III. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act 5 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 6 requires, among 

other things, that the rules of a clearing 

agency are designed, in general, to 

protect investors and the public interest. 

In addition, Rule 17Ad–22(d)(8) 

requires registered clearing agencies to 

establish, implement, maintain and 

enforce written policies and procedures 

reasonably designed to have governance 

arrangements that are clear and 

transparent to fulfill the public interest 

requirements in Section 17A of the Act 

applicable to clearing agencies, to 

support the objectives of owners and 

participants, and to promote the 

effectiveness of the clearing agency’s 

risk management procedures.7

The Commission finds that the 

proposed rule change is consistent with 

Section 17A of the Act 8 and the rules 

thereunder applicable to ICE Clear 

Europe. As described above, the Board 

Risk Committee’s Terms of Reference 

provide specific information regarding, 

among other things, the Board Risk 

Committee’s objectives, responsibilities, 

composition, and governance, as well as 

its relationship with the Board and 

other ICE Clear Europe committees. 

Specifically, the Terms of Reference 

state that the Board Risk Committee’s 

role is to advise the Board with respect 

to various firm-wide risk management 

matters, while helping the Board to 

ensure that ICE Clear Europe (i) 

implements and maintains agreed risk 

management procedures, processes and 

controls, (ii) provides appropriate access 

to its clearing services, and (iii) 

appropriately considers the interests of 

non-clearing member users of cleared 

products, including with respect to 

account segregation and collateral 

protection. In this role, the Terms of 

Reference provide that the Board Risk 

Committee will, among other things, 

advise the Board regarding any 

arrangements that may materially 

impact ICE Clear Europe’s risk 

management (such as a significant 

change in its criteria for accepting 

clearing members, clearing in new 

markets, or outsourcing of certain 

functions). 

Moreover, the Terms of Reference 

provide that the Board Risk Committee 

will oversee all risks facing ICE Clear 

Europe (including counterparty credit 

risk, operational risk, and liquidity risk). 

ICE Clear Europe states that the Board 

Risk Committee’s activities will relate to 

all categories of products cleared at ICE 

Clear Europe, and will be in addition to 

the activities of its existing productspecific risk committees (i.e., the F&O, 

CDS and FX risk committees). The 

Terms of Reference also require the 

Board Risk Committee to report directly 

to the Board and receive and review all 

recommendations from each of the 

product-specific risk committees. The 

Commission believes that these 

arrangements are reasonably designed to 

protect investors and the public interest 

and to promote the effectiveness of ICE 

Clear Europe’s risk management 

procedures. In addition, the 

Commission believes that the 

composition of the Board Risk 

Committee, as described in the Terms of 

Reference, is reasonably designed to 

represent the interests of owners, 

clearing participants, and customers, 

and, therefore, support owner and 

participant objectives. 

Accordingly, the Commission believes 

that the proposed rule change is 

consistent with Section 17A(b)(3)(F) of 

the Act,9 and the requirements of Rule 

17Ad–22(d)(8) 10 applicable to 

registered clearing agencies. 

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 11 and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,12 that the 

proposed rule change (SR–ICEEU–2014– 

22) be, and hereby is, approved.13

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00529 Filed 1–14–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74029; File No. SR– 

NYSEArca–2014–151] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Commentary 

.06 to Rule 6.8 To Extend the Pilot 

Program That Eliminated the Position 

Limits for Options on SPDR S&P 500 

ETF 

January 9, 2015. 

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 December 

30, 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 self-regulatory 

organization. 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

Commentary .06 to Rule 6.8 to extend 

the pilot program that eliminated the 

position limits for options on SPDR S&P 

500 ETF (‘‘SPY’’) (‘‘SPY Pilot Program’’). 

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 

self-regulatory organization 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 those statements may be examined at 


rljohnson on DSK3VPTVN1PROD with NOTICES
2162 Federal Register / Vol. 80, No. 10 / Thursday, January 15, 2015 / Notices 

3See Securities Exchange Act Release No. 68001 

(October 5, 2012), 77 FR 62303 (October 12, 2012) 

(SR–NYSEArca–2012–112). 

4 Id. 

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

6 15 U.S.C. 78f(b)(5). 

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

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and the text of 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. 

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 

Commentary .06 to Rule 6.8 to extend 

the time period of the SPY Pilot 

Program,3 which is currently scheduled 

to expire on February 5, 2015, through 

July 12, 2015. 

This filing does not propose any 

substantive changes to the SPY Pilot 

Program. In proposing to extend the 

SPY Pilot Program, the Exchange 

reaffirms its consideration of several 

factors that supported the original 

proposal of the SPY Pilot Program, 

including (1) the availability of 

economically equivalent products and 

their respective position limits, (2) the 

liquidity of the option and the 

underlying security, (3) the market 

capitalization of the underlying security 

and the related index, (4) the reporting 

of large positions and requirements 

surrounding margin, and (5) the 

potential for market on close volatility. 

In the original proposal to establish 

the SPY Pilot Program, the Exchange 

stated that if it were to propose an 

extension, permanent approval or 

termination of the program, the 

Exchange would submit, along with any 

filing proposing such amendments to 

the program, a report providing an 

analysis of the SPY Pilot Program 

covering the first twelve (12) months 

during which the SPY Pilot Program 

was in effect (the ‘‘Pilot Report’’).4

Accordingly, the Exchange is submitting 

the Pilot Report detailing the Exchange’s 

experience with the SPY Pilot Program. 

The Pilot Report is attached as Exhibit 

3 to this filing. The Exchange notes that 

it is unaware of any problems created by 

the SPY Pilot Program and does not 

foresee any as a result of the proposed 

extension. In extending the SPY Pilot 

Program, the Exchange states that if it 

were to propose another extension, 

permanent approval or termination of 

the program, the Exchange will submit 

another Pilot Report covering the period 

since the previous extension, which will 

be submitted at least 30 days before the 

end of the proposed extension. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 6

in particular, in that it is 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 Exchange believes 

that extending the SPY Pilot Program 

promotes just and equitable principles 

of trade by permitting market 

participants, including market makers, 

institutional investors and retail 

investors, to establish greater positions 

when pursuing their investment goals 

and needs. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not designed to 

address any aspect of competition, 

whether between the Exchange and its 

competitors, or among market 

participants. Instead, the proposed rule 

change is designed to allow the SPY 

Pilot Program to continue as other SROs 

have adopted similar provisions. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8 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 and Rule 19b– 

4(f)(6) thereunder.9

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– 

NYSEArca–2014–151 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–NYSEArca–2014–151. 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 


rljohnson on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 10 / Thursday, January 15, 2015 / Notices 2163 

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). 

4 17 CFR 240.19b–4(f)(6)(iii). 

5See Securities Exchange Act Release No. 71449 

(January 30, 2014), 79 FR 6961 (February 5, 2014) 

(SR–EDGX–2013–43; SR–EDGA–2013–34). 

6The term ‘‘User’’ is defined as ‘‘any Member or 

Sponsored Participant who is authorized to obtain 

access to the System pursuant to Rule 11.3.’’ See 

Exchange Rule 1.5(ee). 

7To the extent a proposed rule change is based 

on an existing BATS Rule, the language of the 

BATS and Exchange Rules may differ to extent 

necessary to conform with existing Exchange rule 

text or to account for details or descriptions 

included in the Exchange Rules but not currently 

included in BATS rules based on the current 

structure of such rules. 

8Exchange Rule 1.5(cc) defines ‘‘System’’ as ‘‘the 

electronic communications and trading facility 

designated by the Board through which securities 

orders of Users are consolidated for ranking, 

execution and, when applicable, routing away.’’ 

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 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– 

NYSEArca–2014–151, and should be 

submitted on or before February 5, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00532 Filed 1–14–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74023; File No. SR–EDGX– 

2015–03] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Certain Rules 

To Adopt or Align System 

Functionality With That Currently 

Offered by BATS Exchange, Inc. and 

BATS Y-Exchange, Inc. 

January 9, 2015. 

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 January 

8, 2015, EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

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

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it 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 certain rules to adopt or align 

system functionality with that currently 

offered by BATS Exchange, Inc. (‘‘BZX’’) 

and BATS Y-Exchange, Inc. (‘‘BYX’’, 

collectively with BZX, ‘‘BATS’’) in 

order to provide a consistent technology 

offering amongst the Exchange and its 

affiliates. These changes are described 

in detail below and include amending: 

(i) Rule 11.1 regarding the Exchange’s 

trading sessions and 

Order Types; (v) Rule 11.9, Priority of 

Orders; (vi) Rule 11.10, Order 

Execution; (vii) Rule 11.11, Routing to 

Away Trading Centers; and (viii) Rule 

11.21, Retail Orders. 

The proposed rule change does not 

propose to implement new or unique 

functionality that has not been 

previously filed with the Commission or 

is not available on BATS. The Exchange 

notes that the proposed rule text is 

based on the rules and is different only 

to the extent necessary to conform to the 

Exchange’s current rules. 

The Exchange does not believe that 

the proposed rule change will have any 

direct or significant indirect effect on 

any other Exchange rule in effect at the 

time of this 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 the 

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 

Earlier this year, the Exchange and its 

affiliate, EDGA Exchange, Inc. 

(‘‘EDGA’’) received approval to effect a 

merger (the ‘‘Merger’’) of the Exchange’s 

parent company, Direct Edge Holdings 

LLC, with BATS Global Markets, Inc., 

the parent of BATS (together with 

BATS, EDGA and EDGX, the ‘‘BGM 

Affiliated Exchanges’’).5 In the context 

of the Merger, the BGM Affiliated 

Exchanges are working to migrate EDGX 

and EDGA onto the BATS technology 

platform, and align certain system 

functionality, retaining only intended 

differences between the BGM Affiliated 

Exchanges. As a result of these efforts, 

the Exchange proposes to amend: (i) 

Rule 11.1 regarding the Exchange’s 

trading sessions and hours of operation; 

(ii) Rule 11.6, Definitions; (iii) Rule 

11.7, Opening Process; (iv) Rule 11.8, 

Order Types; (v) Rule 11.9, Priority of 

Orders; (vi) Rule 11.10, Order 

Execution; (vii) Rule 11.11, Routing to 

Away Trading Centers; and (vi) Rule 

11.21, Retail Orders. 

The proposed amendments are 

intended to align certain system 

functionality with that currently offered 

by BATS in order to provide a 

consistent technology offering for 

Users 6 of the BGM Affiliated 

Exchanges. The Exchange notes that the 

proposed rule text is based on the BATS 

Rule and is different only to the extent 

necessary to conform to the Exchange’s 

current rules.7 The proposed 

amendments do not propose to 

implement new or unique functionality 

that has not been previously filed with 

the Commission or is not available on 

BATS or BYX. 

Rule 11.1, Hours of Trading and Trading 

Days 

Current Functionality. Rule 11.1 sets 

forth when orders may be entered into 

the System 8 and outlines a User’s 

ability to select the trading sessions for 

which an order may be eligible for 

execution. Proposed Rule 11.1(a)(1), 

Session Indicator, describes each of the 

Exchange’s existing trading sessions. A 

User may select the particular trading 

sessions for which their order(s) may be 

eligible for execution. Specifically, 


rljohnson on DSK3VPTVN1PROD with NOTICES