Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 10169 

1Request of the United States Postal Service to 

Add Priority Mail Contract 113 to Competitive 

Product List and Notice of Filing (Under Seal) of 

Unredacted Governors’ Decision, Contract, and 

Supporting Data, February 18, 2015 (Request). 

SUMMARY: The Commission is noticing a 

recent Postal Service filing concerning 

an addition of Priority Mail Contract 

113 to the competitive product list. This 

notice informs the public of the filing, 

invites public comment, and takes other 

administrative steps. 

DATES: Comments are due: February 26, 

2015. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http://

www.prc.gov. Those who cannot submit 

comments electronically should contact 

the person identified in the FOR FURTHER

INFORMATION CONTACT section by 

telephone for advice on filing 

alternatives. 

FOR FURTHER INFORMATION CONTACT: 

David A. Trissell, General Counsel, at 

202–789–6820. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Notice of Commission Action 

III. Ordering Paragraphs 

I. Introduction 

In accordance with 39 U.S.C. 3642 

and 39 CFR 3020.30 et seq., the Postal 

Service filed a formal request and 

associated supporting information to 

add Priority Mail Contract 113 to the 

competitive product list.1

The Postal Service 

contemporaneously filed a redacted 

contract related to the proposed new 

product under 39 U.S.C. 3632(b)(3) and 

39 CFR 3015.5. Id. Attachment B. 

To support its Request, the Postal 

Service filed a copy of the contract, a 

copy of the Governors’ Decision 

authorizing the product, proposed 

changes to the Mail Classification 

Schedule, a Statement of Supporting 

Justification, a certification of 

compliance with 39 U.S.C. 3633(a), and 

an application for non-public treatment 

of certain materials. It also filed 

supporting financial workpapers. 

II. Notice of Commission Action 

The Commission establishes Docket 

Nos. MC2015–33 and CP2015–43 to 

consider the Request pertaining to the 

proposed Priority Mail Contract 113 

product and the related contract, 

respectively. 

The Commission invites comments on 

whether the Postal Service’s filings in 

the captioned dockets are consistent 

with the policies of 39 U.S.C. 3632, 

3633, or 3642, 39 CFR part 3015, and 39 

CFR part 3020, subpart B. Comments are 

due no later than February 26, 2015. 

The public portions of these filings can 

be accessed via the Commission’s Web 

site (http://www.prc.gov). 

The Commission appoints James F. 

Callow to serve as Public Representative 

in these dockets. 

III. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

Nos. MC2015–33 and CP2015–43 to 

consider the matters raised in each 

docket. 

2. Pursuant to 39 U.S.C. 505, James F. 

Callow is appointed to serve as an 

officer of the Commission to represent 

the interests of the general public in 

these proceedings (Public 

Representative). 

3. Comments are due no later than 

February 26, 2015. 

4. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Ruth Ann Abrams, 

Acting Secretary. 

[FR Doc. 2015–03829 Filed 2–24–15; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL SERVICE 

Product Change—Priority Mail 

Negotiated Service Agreement 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 

SUMMARY: The Postal Service gives 

notice of filing a request with the Postal 

Regulatory Commission to add a 

domestic shipping services contract to 

the list of Negotiated Service 

Agreements in the Mail Classification 

Schedule’s Competitive Products List. 

DATES: Effective date: February 25, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth A. Reed, 202–268–3179. 

SUPPLEMENTARY INFORMATION: The 

United States Postal Service® hereby 

gives notice that, pursuant to 39 U.S.C. 

3642 and 3632(b)(3), on February 18, 

2015, it filed with the Postal Regulatory 

Commission a Request of the United 

States Postal Service to Add Priority 

Mail Contract 113 to Competitive 

Product List. Documents are available at 

www.prc.gov, Docket Nos. MC2015–33, 

CP2015–43. 

Stanley F. Mires, 

Attorney, Federal Requirements. 

[FR Doc. 2015–03804 Filed 2–24–15; 8:45 am] 

BILLING CODE 7710–12–P 

POSTAL SERVICE 

Product Change—Priority Mail 

Negotiated Service Agreement 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 

SUMMARY: The Postal Service gives 

notice of filing a request with the Postal 

Regulatory Commission to add a 

domestic shipping services contract to 

the list of Negotiated Service 

Agreements in the Mail Classification 

Schedule’s Competitive Products List. 

DATES: Effective date: February 25, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth A. Reed, 202–268–3179. 

SUPPLEMENTARY INFORMATION: The 

United States Postal Service® hereby 

gives notice that, pursuant to 39 U.S.C. 

3642 and 3632(b)(3), on February 18, 

2015, it filed with the Postal Regulatory 

Commission a Request of the United 

States Postal Service to Add Priority 

Mail Contract 112 to Competitive 

Product List. Documents are available at 

www.prc.gov, Docket Nos. MC2015–32, 

CP2015–42. 

Stanley F. Mires, 

Attorney, Federal Requirements. 

[FR Doc. 2015–03802 Filed 2–24–15; 8:45 am] 

BILLING CODE 7710–12–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74323; File No. 4–631] 

Joint Industry Plan; Order Approving 

the Eighth Amendment to the National 

Market System Plan To Address 

Extraordinary Market Volatility by 

BATS Exchange, Inc., BATS YExchange, Inc., Chicago Board 

Options Exchange, Incorporated, 

Chicago Stock Exchange, Inc., EDGA 

Exchange, Inc., EDGX Exchange, Inc., 

Financial Industry Regulatory 

Authority, Inc., NASDAQ OMX BX, Inc., 

NASDAQ OMX PHLX LLC, The Nasdaq 

Stock Market LLC, National Stock 

Exchange, Inc., New York Stock 

Exchange LLC, NYSE MKT LLC, and 

NYSE Arca, Inc. 

February 19, 2015. 

I. Introduction 

On December 24, 2014, Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’), on behalf of the following 

parties to the National Market System 

Plan: BATS Exchange, Inc., BATS YExchange, Inc., Chicago Board Options 

Exchange, Incorporated, Chicago Stock 

Exchange, Inc., EDGA Exchange, Inc., 

EDGX Exchange, Inc., NASDAQ OMX 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
10170 Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 

1 15 U.S.C. 78k–1. 

2 17 CFR 242.608. 

3See Letter from Christopher B. Stone, Vice 

President, FINRA, to Brent Fields, Secretary, 

Commission, dated December 24, 2014 

(‘‘Transmittal Letter’’). 

4See Securities Exchange Act Release No. 74110 

(January 21, 2015), 80 FR 4321 (‘‘Notice’’). 

5See Securities Exchange Act Release No. 67091, 

77 FR 33498 (Jun. 6, 2012) (File No. 4–631). 

6 17 CFR 242.600(b)(47). See also Section I(H) of 

the Plan. 

7See Section V of the Plan. 

8See Securities Exchange Act Release No. 68953 

(February 20, 2013), 78 FR 13113 (February 26, 

2013). 

9 In approving the Eighth Amendment, the 

Commission has considered its impact on 

efficiency, competition, and capital formation. 15 

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

10 15 U.S.C. 78k–1. 

11 17 CFR 242.608. 

12Appendix B of the Plan requires the 

Participants to: (a) Assess the statistical and 

economic impact on liquidity of approaching Price 

Bands; (b) assess the statistical and economic 

impact of the Price Bands on erroneous trades; (c) 

assess the statistical and economic impact of the 

appropriateness of the Percentage Parameters used 

for the Price Bands; (d) assess whether the Limit 

State is the appropriate length to allow for liquidity 

replenishment when a Limit State is reached 

because of a temporary liquidity gap; (e) evaluate 

concerns from the options markets regarding the 

statistical and economic impact of Limit States on 

liquidity and market quality in the options markets; 

(f) assess whether the process for entering a Limit 

State should be adjusted and whether Straddle 

States are problematic; (g) assess whether the 

process for exiting a Limit State should be adjusted; 

and (h) assess whether the Trading Pauses are too 

long or short and whether the reopening procedures 

should be adjusted. 

These areas are intended to capture the key 

measures necessary to assess the impact of the Plan 

and, if and where appropriate, to support 

recommendations relating to the calibration of the 

Percentage Parameters to help ensure that the stated 

objectives of the Plan are achieved. 

13See Notice, supra, note 4 at 4323. 

14See id. More recently, however, the 

Participants notified Commission staff that they 

have engaged a third-party consultant. Telephone 

conversation between Chris Grobbel, AttorneyAdviser, Commission, and Thushara Therrien, 

Director—Transparency Services, FINRA (February 

3, 2015). 

15See Notice, supra, note 4 at 4323. 

16See id. 

17See id. 

18 15 U.S.C. 78k–1. 

19 17 CFR 242.608. 

20See Securities Exchange Act Release No. 67091 

(May 31, 2012), 77 FR 33498 (June 6, 2012). 

21 15 U.S.C. 78k–1. 

22 17 CFR 242.608. 

BX, Inc., NASDAQ OMX PHLX LLC, the 

Nasdaq Stock Market LLC, National 

Stock Exchange, Inc., New York Stock 

Exchange LLC, NYSE MKT LLC, and 

NYSE Arca, Inc. (collectively with 

FINRA, the ‘‘Participants’’), filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) pursuant 

to Section 11A of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

608 thereunder,2 a proposal to amend 

the Plan to Address Extraordinary 

Market Volatility (‘‘Plan’’).3 The 

proposal represents the eighth 

amendment to the Plan (‘‘Eighth 

Amendment’’), and reflects proposed 

changes unanimously approved by the 

Participants. The Eighth Amendment 

was published for comment in the 

Federal Register on January 27, 2015.4

The Commission has received no 

comment letters regarding the Eighth 

Amendment. This order approves the 

Eighth Amendment to the Plan. 

II. Description of the Proposal 

A. Eighth Amendment to the Plan 

The Eighth Amendment includes two 

proposed changes to the Plan. First, the 

Participants propose to amend the Plan 

to establish a requirement for the 

Participants to submit a Supplemental 

Joint Assessment to the Commission by 

May 29, 2015. Second, the Participants 

propose to extend the end date of the 

pilot period of the Plan from February 

20, 2015 to October 23, 2015. 

B. Background and Purpose of the Plan 

The Plan, approved by the 

Commission in March 2012,5 establishes 

a market-wide limit up-limit down 

mechanism that is intended to address 

extraordinary market volatility in ‘‘NMS 

Stocks,’’ as defined in Rule 600(b)(47) of 

Regulation NMS under the Act.6 The 

Plan sets forth limit up-limit down 

requirements designed to prevent trades 

from occurring outside specified Price 

Bands.7 These limit up-limit down 

requirements are coupled with Trading 

Pauses, as defined in the Plan, to 

accommodate more fundamental price 

moves (as opposed to erroneous trades 

or momentary gaps in liquidity). The 

limit up-limit down mechanism is 

intended to reduce the negative impacts 

of sudden, unanticipated price 

movements in NMS Stocks, such as 

those experienced on May 6, 2010, 

thereby protecting investors and 

promoting a fair and orderly market. 

The initial date of Plan operations was 

April 8, 2013.8

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the Eighth Amendment is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder.9 Specifically, the 

Commission finds that the Eighth 

Amendment is consistent with Section 

11A of the Act 10 and Rule 608 

thereunder 11 in that it is appropriate in 

the public interest, for the protection of 

investors and the maintenance of fair 

and orderly markets, and that it removes 

impediments to, and perfects the 

mechanism of, a national market 

system. 

The Supplemental Joint Assessment 

will evaluate the impact of the Plan 

using the measures set forth in 

Appendix B of the Plan 12 and provide 

the Commission with an extensive 

cross-market data analysis using 

methodology agreed upon by the 

Participants.13 The Participants stated 

that they intend to engage a third-party 

consultant to assist in conducting the 

cross-market analysis and preparing the 

Supplemental Joint Assessment.14 The 

Participants believe that the 

Supplemental Joint Assessment will 

facilitate the development of unified 

recommendations, if and where 

appropriate, regarding operation of the 

Plan.15 The Participants also state that 

they intend to make the Supplemental 

Joint Assessment publicly available.16

The Participants further believe that 

extending the end date of the pilot 

period will: (i) Provide the Participants 

with time to use the information 

collected during the operation of the 

Plan to perform further analysis and 

recommend further amendments to the 

Plan, as necessary; (ii) provide a 

reasonable period of time for the public 

to comment on the Supplemental Joint 

Assessment and recommendations; and 

(iii) allow the Commission and the 

public adequate time to review the 

Supplemental Joint Assessment and any 

recommendations provided by the 

Participants, and to determine if any 

modifications to the Plan are 

appropriate.17

The Commission believes that the 

Supplemental Joint Assessment and any 

resulting recommendations for 

modifications to the Plan from the 

Participants, along with any public 

comment in response thereto, will assist 

the Commission in assessing the 

operation of the Plan and in considering 

any future determinations regarding the 

Plan. 

For the reasons noted above, the 

Commission finds that the Eighth 

Amendment to the Plan is consistent 

with Section 11A of the Act 18 and Rule 

608 thereunder.19 The Commission 

reiterates its expectation that the 

Participants will continue to monitor 

the scope and operation of the Plan and 

study the data produced, and will 

propose any modifications to the Plan 

that may be necessary or appropriate.20

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 11A of the Act 21 and Rule 608 

thereunder,22 that the Eighth 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 10171 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 

73961(December 30, 2014), 80 FR 568 (January 6, 

2015) (SR–OCC–2014–23). 

4According to OCC, an EFP is a transaction 

between two parties in which a futures contract on 

a commodity or security is exchanged for the actual 

physical good. 

5According to OCC, a block trade is a trade 

involving a large number of shares being traded at 

an arranged price between parties, outside of the 

open markets, in order to lessen the impact of such 

a large trade being made public. 

6Cleared Contracts and Commencement Time are 

defined terms set forth in Article 1, Section 1 of 

OCC’s By-Laws. 

7See OCC’s By-Laws Article VI, Section 5. 

According to OCC, in a practical sense, however, 

most trades are novated upon proper submission to 

OCC for clearing since OCC’s By-Laws, with limited 

exception, do not permit OCC to reject any 

confirmed trade due to the failure of the purchasing 

clearing member to pay any amount due to OCC at 

or before the settlement time. See also Securities 

Exchange Act Release No. 65990 (December 16, 

2011), 76 FR 79731 (December 22, 2011) (SR–OCC– 

2011–17). 

8 Id. 

9See Securities Exchange Act Release No. 44727 

(August 20, 2001), 66 FR 45351 (August 28, 2001) 

(SR–OCC–2001–07). 

Amendment to the Plan (File No. 4–631) 

be, and it hereby is, approved. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03875 Filed 2–24–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, February 26, 2015 at 2:00 

p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or her designee, has 

certified that, in her opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matter at the Closed Meeting. 

Commissioner Stein, as duty officer, 

voted to consider the items listed for the 

Closed Meeting in closed session, and 

determined that no earlier notice thereof 

was possible. 

The subject matter of the Closed 

Meeting will be: 

Institution and settlement of 

injunctive actions; 

Institution and settlement of 

administrative proceedings; and 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact the Office of the Secretary at 

(202) 551–5400. 

Dated: February 20, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03947 Filed 2–23–15; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74302; File No. SR–OCC– 

2014–23] 

Self-Regulatory Organizations; the 

Options Clearing Corporation; Order 

Approving Proposed Rule Change To 

Clarify That OCC Would not Treat a 

Futures Transaction That Is an 

Exchange-for-Physical or Block Trade 

as a Non-Competitively Executed 

Trade if the Exchange on Which Such 

Trade Is Executed Has Provided OCC 

With Representations That it Has 

Policies or Procedures Requiring That 

Such Trades Be Executed at 

Reasonable Prices and That Such 

Price Is Validated by the Exchange 

February 19, 2015. 

On December 19, 2014, the Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change File No. SR–OCC– 

2014–23 pursuant to Section 19(b)(1) of 

the Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder.2

The proposed rule change was 

published for comment in the Federal 

Register on January 6, 2015.3 The 

Commission did not receive any 

comments on the proposed rule change. 

This order approves the proposed rule 

change. 

I. Description 

OCC is modifying its By-Laws to add 

an interpretation and policy to Section 

7 of Article XII of its By-Laws to clarify 

that OCC will not treat a futures 

transaction that is an exchange-forphysical (‘‘EFP’’) 4 or block trade in 

futures (‘‘Block Trade’’) 5 as a noncompetitively executed trade, and 

therefore subject to delayed novation, if 

the exchange on which the EFP or Block 

Trade is executed has provided OCC 

with representations that it has rules, 

policies or procedures requiring that 

such trades be executed at reasonable 

prices and that such prices are validated 

by the exchange. 

Background 

According to OCC, under OCC’s ByLaws, the novation of confirmed trades 

(i.e., transactions in options, futures, or 

other ‘‘cleared contracts’’ effected 

through an exchange and submitted to 

OCC for clearing) occurs at the 

‘‘commencement time’’ for such 

transactions.6 The ‘‘commencement 

time’’ for most confirmed trades is when 

daily position reports are made 

available to clearing members.7

However, transactions in certain cleared 

products and certain types of 

transactions, including noncompetitively executed EFPs and Block 

Trades, have delayed commencement 

times that are tailored to address risks 

specific to such products or 

transactions,8 including, but not limited 

to, those risks presented by off-market 

transactions. 

When OCC began clearing EFPs and 

Block Trades, it established that the 

commencement time for such 

transactions is expressly conditioned 

upon the receipt by OCC of variation 

payments due from purchasing and 

selling clearing members because EFPs 

and Block Trades could be executed 

away from the market and be executed 

at other than market prices. These 

factors were viewed as creating 

heightened exposure to OCC if a 

clearing member defaults on a trade 

executed at an off-market price and, as 

a result, Article XII, Section 7 of OCC’s 

By-Laws establishes that the 

commencement time for an EFP or 

Block Trade is the time of the first 

variation payment after the trade is 

reported to OCC (typically 9:00 a.m. 

Central Time the following business 

day).9 OCC delays its novation of these 

non-competitively executed futures 

trades because OCC is bound to pay the 

first variation settlement amount to the 

counterparty once novation has 

occurred, and if the agreed-upon price 

at which the trade is entered differs 

from the competitive market price, there 

is an increased likelihood that OCC may 


asabaliauskas on DSK5VPTVN1PROD with NOTICES