Federal Register / Vol. 80, No. 5 / Thursday, January 8, 2015 / Notices 1065 

17See 12 U.S.C. 5461(b). 

18 Id. 

19 12 U.S.C. 5464(a)(2). 

20 12 U.S.C. 5464(b). 

21 17 CFR 240.17Ad–22. 

22The Clearing Agency Standards are 

substantially similar to the risk management 

standards established by the Board of Governors of 

the Federal Reserve System governing the 

operations of designated FMUs that are not clearing 

entities and financial institutions engaged in 

designated activities for which the Commission or 

the Commodity Futures Trading Commission is the 

Supervisory Agency. See Financial Market Utilities, 

77 FR 45907 (August 2, 2012). 

23 12 U.S.C. 5464(b). 

24 12 U.S.C 5464(b). 

25 17 CFR 240.17Ad–22(b)(3). 

26 12 U.S.C. 5465(e)(1)(I). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

respect to all transactions under the 

Master Repurchase Agreement. 

II. Discussion and Commission 

Findings 

Although Title VIII does not specify a 

standard of review for an advance 

notice, the Commission believes that the 

stated purpose of Title VIII is 

instructive.17 The stated purpose of 

Title VIII is to mitigate systemic risk in 

the financial system and promote 

financial stability by, among other 

things, promoting uniform risk 

management standards for systemicallyimportant financial market utilities 

(‘‘FMUs’’) and strengthening the 

liquidity of systemically important 

FMUs.18

Section 805(a)(2) of the Clearing 

Supervision Act 19 authorizes the 

Commission to prescribe risk 

management standards for the payment, 

clearing, and settlement activities of 

designated clearing entities and 

financial institutions engaged in 

designated activities for which it is the 

supervisory agency or the appropriate 

financial regulator. Section 805(b) of the 

Clearing Supervision Act 20 states that 

the objectives and principles for the risk 

management standards prescribed under 

Section 805(a) shall be to: 

• Promote robust risk management; 

• promote safety and soundness; 

• reduce systemic risks; and 

• support the stability of the broader 

financial system. 

The Commission has adopted risk 

management standards under Section 

805(a)(2) of the Clearing Supervision 

Act (‘‘Clearing Agency Standards’’).21

The Clearing Agency Standards became 

effective on January 2, 2013, and require 

registered clearing agencies that perform 

central counterparty (‘‘CCP’’) services to 

establish, implement, maintain, and 

enforce written policies and procedures 

that are reasonably designed to meet 

certain minimum requirements for their 

operations and risk management 

practices on an ongoing basis.22 As 

such, it is appropriate for the 

Commission to review advance notices 

against these Clearing Agency 

Standards, and the objectives and 

principles of these risk management 

standards as described in Section 805(b) 

of the Clearing Supervision Act.23

The Commission believes that the 

proposal in this Advance Notice is 

designed to further the objectives and 

principles of Section 805(b) of the 

Clearing Supervision Act.24 As a 

systemically-important FMU, it is 

imperative that OCC have adequate 

resources to be able to satisfy its 

counterparty settlement obligations. The 

MRA Program provides OCC with a 

committed liquidity resource that does 

not increase the concentration of OCC’s 

counterparty exposure because the 

counterparties will not include OCC’s 

clearing members nor affiliated 

commercial banking institutions. 

Accordingly, the Commission believes 

that the proposal should promote robust 

risk management, promote safety and 

soundness in the marketplace, reduce 

systemic risks, and support the stability 

of the broader financial system by giving 

OCC access to additional committed 

liquidity that will help OCC meet its 

settlement obligations in a timely 

manner, while also limiting the 

exposure that OCC has to its 

counterparties. 

Exchange Act Rule 17Ad–22(b)(3),25

adopted as part of the Clearing Agency 

Standards, requires that a non-securitybased swap registered clearing agency 

that performs CCP services establish, 

implement, maintain, and enforce 

written policies and procedures 

reasonably designed to withstand, at a 

minimum, a default by the participant 

family to which it has the largest 

exposure in extreme but plausible 

market conditions. As a part of OCC’s 

overall liquidity plan, the Commission 

believes that the MRA Program will 

contribute additional liquid financial 

resources that should enhance OCC’s 

ability to meet any potential settlement 

demands arising out of a default of a 

clearing member or clearing member 

family, including one to which it has 

the largest exposure. 

III. Conclusion 

It is therefore noticed, pursuant to 

Section 806(e)(1)(I) of the Clearing 

Supervision Act,26 that the Commission 

does not object to advance notice 

proposal (SR–OCC–2014–809) and that 

OCC is authorized to implement the 

proposal as of the date of this notice. 

By the Commission. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00052 Filed 1–7–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73977; File No. SR– 

NYSEARCA–2014–152] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Extending Its Program 

That Allows Transactions To Take 

Place at a Price That Is Below $1 Per 

Option Contract Until January 5, 2016 

January 2, 2015. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on December 

30, 2014, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to extend its 

program that allows transactions to take 

place at a price that is below $1 per 

option contract until January 5, 2016. 

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 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 


tkelley on DSK3SPTVN1PROD with NOTICES
1066 Federal Register / Vol. 80, No. 5 / Thursday, January 8, 2015 / Notices 

4See Securities Exchange Act Release No. 63476 

(December 8, 2010), 75 FR 77930 (December 14, 

2010) (SR–NYSE Arca–2010–109). 

5Currently the $1 cabinet trading procedures are 

limited to options classes traded in $0.05 or $0.10 

standard increment. The $1 cabinet trading 

procedures are not available in Penny Pilot Program 

classes because in those classes an option series can 

trade in a standard increment as low as $0.01 per 

share (or $1.00 per option contract with a 100 share 

multiplier). Because the temporary procedures 

allow trading below $0.01 per share (or $1.00 per 

option contract with a 100 share multiplier), the 

procedures are available for all classes, including 

those classes participating in the Penny Pilot 

Program. 

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

7 15 U.S.C. 78f(b)(5). 

8The Exchange has satisfied this requirement. 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). 

11 Id. 

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 purpose of this filing is to extend 

the Pilot Program 4 under Rule 6.80 to 

allow accommodation transactions 

(‘‘Cabinet Trades’’) to take place at a 

price that is below $1 per option 

contract for one additional year. The 

Exchange proposes to extend the 

program, which is due to expire on 

January 5, 2015 until January 5, 2016. 

An ‘‘accommodation’’ or ‘‘cabinet’’ 

trade refers to trades in listed options on 

the Exchange that are worthless or not 

actively traded. Cabinet trading is 

generally conducted in accordance with 

the Exchange Rules, except as provided 

in Exchange Rule 6.80 Accommodation 

Transactions (Cabinet Trades), which 

sets forth specific procedures for 

engaging in cabinet trades. Rule 6.80 

currently provides for cabinet 

transactions to occur via open outcry at 

a cabinet price of a $1 per option 

contract in any options series open for 

trading in the Exchange, except that the 

Rule is not applicable to trading in 

option classes participating in the 

Penny Pilot Program. Under the 

procedures, bids and offers (whether 

opening or closing a position) at a price 

of $1 per option contract may be 

represented in the trading crowd by a 

Floor Broker or by a Market Maker or 

provided in response to a request by a 

Trading Official, a Floor Broker or a 

Market Maker, but must yield priority to 

all resting orders in the Cabinet (those 

orders held by the Trading Official, and 

which resting cabinet orders may be 

closing only). So long as both the buyer 

and the seller yield to orders resting in 

the cabinet book, opening cabinet bids 

can trade with opening cabinet offers at 

$1 per option contract. 

The Exchange has temporarily 

amended the procedures through 

January 5, 2015 to allow transactions to 

take place in open outcry at a price of 

at least $0 but less than $1 per option 

contract. These lower-priced 

transactions are permitted to be traded 

pursuant to the same procedures 

applicable to $1 cabinet trades, except 

that (i) bids and offers for opening 

transactions are only permitted to 

accommodate closing transactions in 

order to limit use of the procedure to 

liquidations of existing positions, and 

(ii) the procedures are also made 

available for trading in option classes 

participating in the Penny Pilot 

Program.5 The Exchange believes that 

allowing a price of at least $0 but less 

than $1 better accommodates the closing 

of options positions in series that are 

worthless or not actively traded, 

particularly in the event where there has 

been a significant movement in the 

price of the underlying security that 

results in a large number of series being 

out-of-the-money. For example, a 

market participant might have a long 

position in a put series with a strike 

price of $30 and the underlying stock 

might be trading at $100. In such an 

instance, there might not otherwise be a 

market for that person to close-out the 

position even at the $1 cabinet price 

(e.g., the series might be quoted no bid). 

As with other accommodation 

liquidations under Rule 6.80, 

transactions that occur for less than $1 

will not be disseminated to the public 

on the consolidated tape. In addition, as 

with other accommodation liquidations 

under Rule 6.80, the transactions will be 

exempt from the Consolidated Options 

Audit Trail (‘‘COATS’’) requirements of 

Exchange Rule 6.67 Order Format and 

System Entry Requirements. However, 

the Exchange will maintain quotation, 

order and transaction information for 

the transactions in the same format as 

the COATS data is maintained. In this 

regard, all transactions for less than $1 

must be reported to the Exchange 

following the close of each business 

day. 

2. Statutory Basis 

The Exchange believes that this 

proposed rule change is consistent with 

Section 6(b) of the Securities Exchange 

Act of 1934 (‘‘Act’’),6 in general, and 

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

of the Act 7 in particular, in that it is 

designed to 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, to protect 

investors and the public interest. The 

Exchange believes that allowing for 

liquidations at a price less than $1 per 

option contract will better facilitate the 

closing of options positions that are 

worthless or not actively trading, 

especially in Penny Pilot issues where 

Cabinet Trades are not otherwise 

permitted. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

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 

Because the foregoing rule 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 if consistent 

with the protection of investors and the 

public interest, provided that the selfregulatory organization has given 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,8 the proposed rule change 

has become effective pursuant to 

Section 19(b)(3)(A) of the Act 9 and Rule 

19b–4(f)(6) thereunder.10

Under Rule 19b–4(f)(6) of the Act,11

the proposal does not become operative 

for 30 days after the date of its filing, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest. The Exchange has requested 

that the Commission waive the 30-day 

operative delay period after which a 

proposed rule change under Rule 19b– 

4(f)(6) becomes operative so that the 

pilot may continue without 

interruption. The Commission believes 

that waiver of the 30-day operative 

delay is consistent with the protection 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 5 / Thursday, January 8, 2015 / Notices 1067 

12For purposes only of waiving the operative 

delay, the Commission has considered the proposed 

rule’s impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12). 

of investors and the public interest 

because it will allow the pilot to 

continue uninterrupted, thereby 

avoiding any potential investor 

confusion that could result from a 

temporary interruption in the pilot and 

allowing members to continue to benefit 

from the program. Based on the 

foregoing, the Commission hereby 

waives the 30-day operative delay and 

designates the proposal operative upon 

filing.12

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 will institute proceedings 

to determine whether the proposed rule 

change 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–2014–152 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–2014–152. 

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 will also be available for 

inspection and copying at the NYSE’s 

principal office and on its Internet Web 

site at www.nyse.com. 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–2014–152 and should be 

submitted on or before January 29, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00050 Filed 1–7–15; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 8997] 

Culturally Significant Objects Imported 

for Exhibition Determinations: ‘‘Ink and 

Gold: Art of the Kano’’ Exhibition 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, Delegation of Authority 

No. 236–3 of August 28, 2000 (and, as 

appropriate, Delegation of Authority No. 

257 of April 15, 2003), I hereby 

determine that the objects to be 

included in the exhibition ‘‘Ink and 

Gold: Art of the Kano,’’ imported from 

abroad for temporary exhibition within 

the United States, are of cultural 

significance. The objects are imported 

pursuant to loan agreements with the 

foreign owners or custodians. I also 

determine that the exhibition or display 

of the exhibit objects at the Philadelphia 

Museum of Art, Philadelphia, PA, from 

on or about February 12, 2015, until on 

or about May 10, 2015, and at possible 

additional exhibitions or venues yet to 

be determined, is in the national 

interest. I have ordered that Public 

Notice of these Determinations be 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including lists of 

the exhibit objects, contact Paul W. 

Manning, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6469). The 

mailing address is U.S. Department of 

State, SA–5, L/PD, Fifth Floor (Suite 

5H03), Washington, DC 20522–0505. 

Dated: January 5, 2015. 

Kelly Keiderling, 

Principal Deputy Assistant Secretary, Bureau 

of Educational and Cultural Affairs, 

Department of State. 

[FR Doc. 2015–00105 Filed 1–7–15; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

[Summary Notice No. 2014–148] 

Petition for Exemption; Summary of 

Petition Received; Brandau, Jerry 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice. 

SUMMARY: This notice contains a 

summary of a petition seeking relief 

from specified requirements of Title 14 

of the Code of Federal Regulations. The 

purpose of this notice is to improve the 

public’s awareness of, and participation 

in, the FAA’s exemption process. 

Neither publication of this notice nor 

the inclusion or omission of information 

in the summary is intended to affect the 

legal status of the petition or its final 

disposition. 

DATES: Comments on this petition must 

identify the petition docket number and 

must be received on or before January 

28, 2015. 

ADDRESSES: Send comments identified 

by docket number FAA–2014–1016 

using any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30; U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE., Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 


tkelley on DSK3SPTVN1PROD with NOTICES