Document ID: SEC-2011-1174-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: OneChicago, LLC
Posted Date: 2011-08-12T04:00Z

[Federal Register Volume 76, Number 156 (Friday, August 12, 2011)]
[Notices]
[Pages 50276-50277]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-20576]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65053; File No. SR-OC-2011-01]

Self-Regulatory Organizations; OneChicago, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change to Allow for Four 
Decimal Point Pricing for Block and Exchange for Physical (``EFPs'') 
Trades

August 8, 2011.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-7 under the Act,\2\ notice is hereby given 
that on August 2, 2011, OneChicago, LLC (``OneChicago'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change 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. OneChicago also has filed 
this proposed rule change with the Commodity Futures Trading Commission 
(``CFTC''). On July 26, 2011, OneChicago filed a written certification 
with the CFTC under Section 5c(c) of the Commodity Exchange Act 
(``CEA'').\3\
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    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
    \3\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    OneChicago is proposing to allow block trades and the futures 
component of EFP trades to be traded/priced in four decimals points. 
Regular trades (non-block or non EFP) will continue to trade in only 
two decimal points. The text of the proposed rule change is available 
on the Exchange's Web site at http://www.onechicago.com, at the 
principal office of the Exchange, at the Commission's Public Reference 
Room, and at the Commission's Web site at http://www.sec.gov.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, OneChicago 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. OneChicago 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    OneChicago is proposing to allow block trades and the futures 
component of EFP trades to be priced in four decimals points. The 
additional precision will aid in aligning these generally larger sized 
trades with the appropriate implied interest rate desired by the trade 
participants. The current two decimal pricing forces block transactions 
to be split into multiple transactions to arrive at the futures price 
that achieves the desired financing rate. This change will reduce the 
need to split block transactions. The change for EFPs will support 
reflecting the already four decimal point EFP price in the futures 
prices as opposed to the current practice of forcing it to be reflected 
in the stock price.
    Market participants and system providers will need to modify their 
technologies to accommodate the additional decimals points for block 
trades and EFPs.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\4\ in general, and furthers the objectives of Section 6(b)(5) of 
the Act, in particular, in that it is designed to foster cooperation 
and coordination with persons facilitating transactions in securities, 
and remove impediments to and perfect the mechanism of a free and open 
market and national market system. The proposed rule would foster 
cooperation with market participants by allowing them to align large-
sized trades with their desired interest rate. Moreover, the proposed 
rule would alleviate the need to split transactions, thereby removing 
an impediment to and

[[Page 50277]]

perfecting the mechanism of a free and open market.
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    \4\ 15 U.S.C. 78f(b).
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B. Self-Regulatory Organization's Statement on Burden on Competition
    OneChicago does not believe that the proposed rule change will have 
an impact on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Comments on the OneChicago proposed rule change have not been 
solicited and none have been received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change will be effective upon filing and 
operational on August 15, 2011. At any time within 60 days of the date 
of effectiveness of the proposed rule change, the Commission, after 
consultation with the CFTC, may summarily abrogate the proposed rule 
change and require that the proposed rule change be refiled in 
accordance with the provisions of Section 19(b)(7) of the Act.\5\
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    \5\ 15 U.S.C. 78s(b)(7).
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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 e-mail to rule-comments@sec.gov. Please include 
File Number SR-OC-2011-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-OC-2011-01. This file 
number should be included on the subject line if e-mail 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 
a.m. and 3 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; 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-OC-2011-01 and should be 
submitted on or before September 2, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
Elizabeth M. Murphy,
Secretary.
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    \6\ 17 CFR 200.30-3(a)(73).
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[FR Doc. 2011-20576 Filed 8-11-11; 8:45 am]
BILLING CODE 8011-01-P