Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Notices 52079 

92Section 19(b)(2) of the Act, as amended by the 

Securities Acts Amendments of 1975, Public Law 

94–29 (June 4, 1975), grants to the Commission 

flexibility to determine what type of proceeding— 

either oral or notice and opportunity for written 

comments—is appropriate for consideration of a 

particular proposal by a self-regulatory 

organization. See Securities Acts Amendments of 

1975, Senate Comm. on Banking, Housing & Urban 

Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 

(1975). 

93 17 CFR 200.30–3(a)(12); 17 CFR 200.30– 

3(a)(57). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.17Ad–22(e)(5). 

4OCC’s By-Laws and Rules can be found on 

OCC’s public Web site: http://optionsclearing.com/ 

about/publications/bylaws.jsp. 

5 17 CFR 240.17Ad–22. 

6 17 CFR 240.17Ab2–2. 

7 15 U.S.C. 78q–1. 

8 12 U.S.C. 5461 et seq. 

9 17 CFR 240.17Ad–22(a)(5). 

opportunity to make an oral 

presentation.92

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposed rule change, as modified by 

Amendment Nos. 1 and 2, should be 

approved or disapproved by November 

30, 2017. Any person who wishes to file 

a rebuttal to any other person’s 

submission must file that rebuttal by 

December 14, 2017. 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 No. SR– 

NASDAQ–2017–074 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 No. 

SR–NASDAQ–2017–074. The 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 the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File No. 

SR–NASDAQ–2017–074 and should be 

submitted by November 30, 2017. 

Rebuttal comments should be submitted 

by December 14, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.93

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24371 Filed 11–8–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82009; File No. SR–OCC– 

2017–008] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change 

Related to The Options Clearing 

Corporation’s Collateral Risk 

Management Policy 

November 3, 2017. 

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

Securities Exchange Act of 1934,1 and 

Rule 19b–4 thereunder,2 notice is 

hereby given that on October 27, 2017, 

The Options Clearing Corporation 

(‘‘OCC’’) 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 by OCC. 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 

This proposed rule change by The 

Options Clearing Corporation (‘‘OCC’’) 

would formalize and update OCC’s 

Collateral Risk Management Policy 

(‘‘CRM Policy’’). This policy would 

promote compliance with Rule 17Ad– 

22(e)(5), which generally requires a 

covered clearing agency to have policies 

and procedures reasonably designed to, 

among other things, limit the assets it 

accepts as collateral to those with low 

credit, liquidity, and market risks and 

subject such assets to appropriate 

haircuts and concentration limits that 

are reviewed for continued sufficiency 

not less than annually.3 The Collateral 

Risk Management Policy is included as 

confidential Exhibit 5 of the filing. 

The proposed rule change does not 

require any changes to the text of OCC’s 

By-Laws or Rules. All terms with initial 

capitalization that are not otherwise 

defined herein have the same meaning 

as set forth in the OCC By-Laws and 

Rules.4

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

(1) Purpose 

Background 

On September 28, 2016, the 

Commission adopted amendments to 

Rule 17Ad–22 5 and added new Rule 

17Ab2–2 6 pursuant to Section 17A of 

the Securities Exchange Act of 1934, as 

amended, (‘‘Act’’) 7 and the Payment, 

Clearing, and Settlement Supervision 

Act of 2010 (‘‘Payment, Clearing and 

Settlement Supervision Act’’) 8 to 

establish enhanced standards for the 

operation and governance of those 

clearing agencies registered with the 

Commission that meet the definition of 

a ‘‘covered clearing agency,’’ as defined 

by Rule 17Ad–22(a)(5) 9 (collectively, 

the new and amended rules are herein 

referred to as ‘‘CCA’’ rules). The CCA 

rules require that a covered clearing 

agency, among other things, establish, 

implement, maintain, and enforce 

written policies and procedures 

reasonably designed to: 

‘‘[l]imit the assets it accepts as collateral to 

those with low credit, liquidity, and market 

risks, and set and enforce appropriately 

conservative haircuts and concentration 

limits if the covered clearing agency requires 


sradovich on DSK3GMQ082PROD with NOTICES
52080 Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Notices 

10 17 CFR 240.17Ad–22(e)(5). 

11 Id. 

12 Id. 

13Securities Exchange Act Release No. 78961 

(September 28, 2016), 81 FR 70786, 70812 (October 

13, 2016) (‘‘CCA Adopting Release’’) (noting that 

the requirements of Rule 17Ad–22(e)(5) are 

‘‘intended to ‘‘help ensure that a covered clearing 

agency is resilient in times of market stress . . . 

.’’). 14 Id. at 70816. 

15Specifically, evaluations of OCC’s 

counterparties are supported by the Counterparty 

Credit Risk Management Policy. 16Sovereign credit risk refers primarily to the risk 

associated with accepting a foreign country’s debt 

as collateral or the impact sovereign risk could have 

on the credit risk of OCC’s counterparties. 17Liquidity risk generally refers to the potential 

price impact that may be observed when selling a 

collateral position whose size surpasses the 

market’s current depth. 

18 Giving no value to a participant’s own 

securities or its affiliate’s securities is a means of 

addressing wrong-way risk. See CCA Adopting 

Release, supra note 11, at n.317 (discussing wrongway risk). Notwithstanding this prohibition, equity 

securities of participants can be used to hedge 

options positions on such equity securities. See 

OCC Rules 601 and 610. 

19Limiting the amount of a particular asset type 

a participant may pledge is also a means of 

addressing concentration risk. Specifically, the 

CRM Policy provides that OCC mitigates 

concentration risk by limiting the aggregation or 

concentration of large positions relative to market 

depth for a security and, consistent with OCC’s 

liquidation assumptions, restricts the value given to 

collateral assets beyond amounts that are 

determined to serve as a hedge to a Clearing 

Member’s portfolio. 

20Execution risk generally refers to the risk that 

a counterparty fails to deliver cash or securities 

when required. 

21Custody risk refers to, for example, the risk that 

a custodian holding OCC collateral becomes 

insolvent. 

22Operational risk generally refers to the risk that 

collateral cannot be delivered on a timely basis. 

collateral to manage its or its participants’ 

credit exposure; and require a review of the 

sufficiency of its collateral haircuts and 

concentration limits to be performed not less 

than annually.’’ 10

OCC meets the definition of a covered 

clearing agency, and is therefore subject 

to the requirements of the CCA rules, 

including Rule 17Ad–22(e)(5).11

Collateral Risk Management Policy 

OCC proposes to formalize and 

update its CRM Policy. The purpose of 

the CRM Policy is to describe OCC’s 

framework for collateral acceptability, 

valuations and haircuts, and collateral 

maintenance. The CRM Policy, as 

proposed, is designed to promote 

compliance with the Rule 17Ad– 

22(e)(5) 12 requirements that mandate 

that covered clearing agencies have 

written policies and procedures that are 

reasonably designed to limit collateral 

to assets with low credit, liquidity, and 

market risks, and that establish 

appropriately conservative haircuts and 

concentration limits that are reviewed 

no less than annually. OCC notes that 

the CRM Policy is part of a broader 

framework regarding collateral risk 

management, including OCC’s By-Laws, 

Rules, and other policies, that are 

designed to ensure that OCC accepts 

appropriate collateral to remain resilient 

in times of market stress.13

With regard to a covered clearing 

agency’s policies and procedures that 

address collateral, the Commission 

noted in the release adopting the CCA 

rules that such policies and procedures 

generally should take into account 

whether the covered clearing agency 

has: (1) Limited the assets it accepts to 

those with low credit, liquidity, and 

market risks; (2) established prudent 

valuation practices and developed 

haircuts that are regularly tested and 

take into account stressed market 

conditions; (3), established stable and 

conservative haircuts to reduce the need 

for pro-cyclical adjustments; (4) avoided 

concentrated holdings of certain assets 

where such holdings would 

significantly impair the ability to 

liquidate the assets quickly and without 

significant adverse price affects; (5) 

mitigated risks associated with the use 

of cross-border collateral, as applicable, 

and ensured that the collateral can be 

used in a timely manner; and (6) uses 

a collateral management system that is 

well designed and operationally 

flexible.14

Certain descriptions in the CRM 

Policy are included to promote 

compliance with the Commission’s 

guidance and Rule 17Ad–22(e)(5). For 

example, consistent with the guidance 

regarding cross-border collateral, the 

CRM Policy provides that OCC has the 

authority to reduce the haircut value of 

Canadian government securities if it 

observes increased credit risk, and that 

OCC applies an additional haircut to 

such securities to cover exchange rate 

risk. Consistent with the Commission’s 

guidance that collateral risk 

management systems should remain 

operationally flexible, the CRM Policy 

also describes the authority of the 

Financial Risk Management department 

(‘‘FRM’’) to reject a collateral 

withdrawal request if OCC determines 

that a Clearing Member’s reasonably 

anticipated settlement obligations 

exceed available liquidity resources. 

The descriptions below provide a 

general overview of the three 

substantive sections of OCC’s CRM 

Policy. 

Collateral Acceptability 

The CRM Policy describes the 

categories of risk that are considered by 

OCC in determining which asset classes 

should be acceptable forms of collateral 

as margin assets and Clearing Fund 

contributions. OCC’s assessment of an 

asset class generally includes an 

evaluation of market risk, credit risk, 

liquidity risk. This assessment is 

conducted by the Credit and Liquidity 

Risk Working Group (‘‘CLRWG’’), which 

is a cross functional group comprised of 

representatives from multiple 

departments as noted in the Credit and 

Liquidity Risk Working Group 

Procedure. The CRM Policy further 

provides that the CLRWG establishes 

criteria for each asset class considered 

an acceptable form of collateral that 

evaluates additional risks with respect 

to the asset class such as execution risk, 

custody risk, and operational risk. With 

respect to market risks, the CRM Policy 

provides that eligible assets classes are 

accepted after consideration of their 

liquidity, price transparency, price 

volatility, offset potential with contracts 

cleared by OCC, modeling implications 

and projected inventories. 

With respect to credit risk, the CRM 

Policy separately considers counterparty 

risk and sovereign credit risk. For 

example, to safeguard against 

counterparty risk, the CRM Policy 

provides that FRM evaluates the 

creditworthiness of counterparties, 

including custodial agents and 

settlement banks, against existing 

qualification standards and monitors the 

health of such counterparties on an 

ongoing basis through established 

processes, supported by a separate 

policy within OCC.15 With respect to 

sovereign credit risk,16 the CRM Policy 

provides that CLRWG assess such risks 

against existing minimum sovereign 

ratings and by evaluating, among other 

characteristics, credit, market, liquidity, 

and exchange rate risks. 

Pursuant to the CRM Policy, OCC 

mitigates liquidity risk 17 by limiting 

acceptable collateral to asset classes 

with low liquidity risk, giving no value 

to a participant for its own (or its 

affiliate’s) debt or equity securities18

and limiting the amount of a particular 

asset type that a participant may 

pledge.19 The CRM Policy also provides 

that OCC takes other risks, such as 

execution risk,20 custody risk,21 and 

operational risk,22 into consideration 

when managing collateral risk. 

Valuations and Haircuts 

The CRM Policy describes OCC’s 

approach to valuing collateral and 

setting and applying haircuts. With 

respect to valuation, the CRM Policy 

provides that OCC’s key considerations 

focus on its pricing process, the period 

of time between collateral revaluations 


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Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Notices 52081 

23Under the CiM approach, the current market 

value of margin assets is included as a positive asset 

value in the calculation of a portfolio’s net asset 

value within OCC’s System for Theoretical Analysis 

and Numerical Simulations (‘‘STANS’’). OCC then 

offsets this positive asset value based on, among 

other things, the expected shortfall and stress test 

charges associated with an account, resulting in a 

net excess or net deficit. 

24 15 U.S.C. 78q–1(b)(3)(F). 

25 17 CFR 240.17Ad–22(e)(5). 

26 Id. 

27 Id. 

28 Id. 

29 15 U.S.C. 78q–1(b)(3)(I). 

30 Id. 

(which are at least daily), established 

haircuts to mitigate market risk, and the 

periodic re-evaluation of the adequacy 

of existing haircuts. OCC’s pricing 

information, as described in the CRM 

Policy, feeds into OCC’s processes for 

establishing margin levels or haircuts, 

daily mark-to-market valuation of 

collateral, and intraday valuation of 

collateral. Given the importance of 

pricing data to inform these processes, 

OCC maintains redundant information 

feeds from multiple sources to ensure 

accuracy and quality. The CRM Policy 

further summarizes OCC’s two 

approaches for valuing collateral: 

Collateral in Margins (‘‘CiM’’) and 

haircuts.23 For collateral that is not 

managed using the CiM process, the 

CRM Policy provides that OCC subjects 

such collateral to percentage haircuts 

established at the time the collateral is 

accepted by OCC and that are monitored 

regularly to ensure the haircuts remain 

adequate. 

Collateral Management Process 

The CRM Policy also outlines the 

three parts of OCC’s collateral 

management processes: (1) Systems and 

processing; (2) reconciliation; and (3) 

reporting. With respect to systems and 

processing, the CRM Policy provides, 

among other things, that OCC’s 

collateral management system has 

controls intended to ensure that no 

Clearing Member goes into collateral 

deficit and that it is designed to report 

the excess/deficit status for each 

account in real-time. OCC also stress 

tests the system annually to ensure that 

it can accommodate a large number of 

automated transactions. With respect to 

reconciliation, the CRM Policy provides 

that OCC performs daily balancing of 

collateral against activity and inventory 

data from custodial banks and 

depositories. The CRM Policy further 

provides that OCC regularly reviews 

collateral deposited pursuant to a letter 

of credit or depository receipt, and the 

escrow deposit banks, to ensure that 

acceptable and sufficient collateral is 

maintained. With respect to reporting, 

the CRM Policy provides that OCC 

systematically delivers end-of-day 

activity and inventory reports to 

Clearing Members and custody banks 

and that reports regarding intraday 

activity can also be obtained. 

Finally, the CRM Policy provides an 

overview of OCC’s collateral reinvestment options, collateral rehypothecation and substitution ability, 

existing cross-margining agreements and 

margin offsets, which are detailed 

separately in OCC’s Cash and 

Investment Management Policy. 

Governance and Annual Review 

The CRM Policy provides that the 

CLRWG reviews the policy’s 

performance and adequacy on at least 

an annual basis, including with respect 

to collateral eligibility, concentration 

limits, collateral haircuts and 

monitoring processes. 

Recommendations for changes are 

presented to OCC’s Management 

Committee and then the Risk 

Committee. The CRM Policy also 

specifies that collateral haircuts and 

concentration limits are reviewed on an 

annual basis by persons who are 

independent of OCC management and 

that adding a new asset class as 

acceptable collateral requires approval 

from OCC’s Management Committee, 

Board of Directors and the Commission. 

(2) Statutory Basis 

Section 17A(b)(3)(F) of the Act 24

requires, among other things, that the 

rules of a clearing agency be designed to 

promote the prompt and accurate 

clearance and settlement of securities 

transactions, and, in general, protect 

investors and the public interest. The 

CRM Policy sets forth the processes that 

OCC uses to limit collateral to assets 

with low credit, liquidity, and market 

risks, and to establish appropriately 

conservative haircuts and concentration 

limits. OCC believes that the proposed 

rule change is consistent with Section 

17A(b)(3)(F) because the CRM Policy is 

reasonably designed to protect investors 

and the public interest by setting forth 

the processes that OCC uses to limit the 

collateral assets that OCC accepts to 

appropriate, risk-adjusted assets that, in 

turn, promote the prompt and accurate 

clearance and settlement of securities 

transactions by supporting OCC’s ability 

to use the collateral to meet settlement 

obligations, as necessary, even in times 

of market stress. 

Rule 17Ad–22(e)(5) 25 requires that 

OCC establish, implement, maintain and 

enforce written policies and procedures 

that are reasonably designed to ‘‘[l]imit 

the assets it accepts as collateral to those 

with low credit, liquidity, and market 

risks.’’ As described in more detail 

above in the subsection discussing 

Collateral Acceptability, the CRM Policy 

provides that in determining assets that 

are acceptable as collateral OCC 

evaluates market, credit and liquidity 

risk as well as additional risks, such as 

execution, custody and operational risk. 

Rule 17Ad–22(e)(5) 26 also requires OCC 

to set and enforce appropriately 

conservative haircuts and concentration 

limits. In this regard, the CRM Policy 

describes that, with respect to collateral 

valuation, OCC’s key considerations 

focus on its pricing process, the period 

between collateral revaluations (which 

are at least daily), established haircuts 

to mitigate market risk and the periodic 

re-evaluation of the adequacy of existing 

haircuts. Moreover, OCC mitigates 

concentration risk by limiting the 

aggregation or concentration of large 

positions relative to market depth for a 

security and, consistent with OCC’s 

liquidation assumptions, restricts the 

value given to collateral assets beyond 

amounts that are determined to serve as 

a hedge to a Clearing Member’s 

portfolio. Finally, Rule 17Ad–22(e)(5) 27

provides that OCC must require a 

review of the sufficiency of its collateral 

haircuts and concentration limits to be 

performed not less than annually. The 

CRM Policy is consistent with this 

provision because it requires its 

performance and adequacy to be 

reviewed on at least an annual basis, 

including with regard to collateral 

eligibility, concentration limits, 

collateral haircuts and related 

monitoring processes. For these reasons, 

OCC believes that the proposed rule 

change is consistent with Rule 17Ad– 

22(e)(5).28

The proposed rule change is not 

inconsistent with the existing rules of 

OCC, including any other rules 

proposed to be amended. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

Section 17A(b)(3)(I) of the Act 29

requires that the rules of a clearing 

agency not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. OCC does not 

believe that the proposed rule change 

would impact or impose any burden on 

competition.30 The proposed rule 

change sets forth the framework, as 

described in the CRM Policy, that OCC 

already uses pursuant to its approved 

By-Laws and Rules to accept collateral 

with low credit, liquidity, and market 

risks, and to set and enforce 


sradovich on DSK3GMQ082PROD with NOTICES
52082 Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Notices 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

appropriately conservative haircuts and 

concentration limits. The framework 

further requires that a review of the 

sufficiency of OCC’s collateral haircuts 

and concentration limits be performed 

not less than annually. Under this 

framework, and as provided for in its 

By-Laws and Rules, all Clearing 

Members are subject to the same 

limitations on acceptable collateral as 

well as to the same haircuts and 

concentration limits. Consequently, no 

Clearing Member is provided a 

competitive advantage over any other 

Clearing Member. Further, the proposed 

rule change would not affect Clearing 

Member’s access to OCC’s services or 

impose any direct burdens on Clearing 

Members. Accordingly, the proposed 

rule change would not unfairly inhibit 

access to OCC’s services or disadvantage 

or favor any particular user in 

relationship to another user. 

For the foregoing reasons, OCC 

believes that the proposed rule change 

is in the public interest, would be 

consistent with the requirements of the 

Act applicable to clearing agencies, and 

would not impact or impose a burden 

on competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments on the proposed 

rule change were not and are not 

intended to be solicited with respect to 

the proposed rule change and none have 

been received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self- regulatory organization 

consents, the Commission will: 

(A) by order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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– 

OCC–2017–008 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–OCC–2017–008. 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 OCC and on OCC’s Web site at 

http://www.theocc.com/components/ 

docs/legal/rules_and_bylaws/sr_occ_17_

008.pdf. All comments received will be 

posted without change. Persons 

submitting comments are cautioned that 

we do not redact or edit personal 

identifying information from comment 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–OCC– 

2017–008 and should be submitted on 

or before November 30, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

Authority.31

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24369 Filed 11–8–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82012; File No. SR–Phlx– 

2017–93] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 

1080(p)(2) To Enhance AntiInternalization Functionality 

November 3, 2017. 

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 November 

2, 2017, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) 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 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 1080(p)(2) to enhance antiinternalization functionality. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqphlx.cchwallstreet. 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’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 enhance the antiinternalization (‘‘AIQ’’) functionality 


sradovich on DSK3GMQ082PROD with NOTICES