Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change Relating to the Use of Derivative Instruments by PIMCO Total Return Exchange Traded Fund, 2736-2737 [2014-00580]
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Federal Register / Vol. 79, No. 10 / Wednesday, January 15, 2014 / Notices
Members because they are not permitted
by law to mutualize loss.8
Under FICC’s current loss allocation
methodology, any loss allocation is first
made against the retained earnings of
FICC attributable to the GSD (after
application of the defaulting member’s
Clearing Fund, funds-only settlement
amounts and any other collateral on
deposit with the GSD and any funds
from any cross-margining or crossguaranty agreements), in an amount up
to 25 percent of FICC’s retained earnings
or such higher amount as may be
approved by the Board of Directors of
FICC.9 If a loss still remains, the GSD
will divide the loss between the Tier
One Netting Members and the Tier Two
Netting Members. Tier One Netting
Members will be allocated the loss
applicable to them first by assessing the
Clearing Fund deposit of each such
member in the amount of up to $50,000,
equally. If a loss still remains, Tier One
Netting Members will be assessed
ratably, in accordance with the
respective amounts of their Required
Fund Deposits, based on the average
daily amount of the member’s Required
Fund Deposit over the prior twelve
months. Applicable Tier Two Netting
Members will be assigned the Tier Two
loss amount using a loss allocation
methodology based on the activity that
the Tier Two Netting Member
conducted with the defaulting
member.10
FICC is also amending GSD’s rules to
state explicitly that GSD will make its
services available to Persons 11 in other
categories as FICC may determine,
subject to the approval of the
Commission. A parallel provision is
already contained in MBSD’s rules.12
wreier-aviles on DSK5TPTVN1PROD with NOTICES
III. Discussion
Section 19(b)(2)(C) of the Act 13
directs the Commission to approve a
self-regulatory organization’s proposed
rule change if the Commission finds that
such proposed rule change is consistent
with the requirements of the Act and the
rules and regulations thereunder
8 Tier One Members include banks, dealers,
futures commission merchants, government
securities issuers and registered clearing agencies
and Tier Two Members include RICs. See Securities
Exchange Act Release No. 63986 (Feb. 28, 2011), 76
FR 12144 (Mar. 4, 2011) (SR–FICC–2010–09).
9 See GSD Rule 4.
10 GSD Rule 4, Section 7 pertains to the
satisfaction of any loss incurred by FICC as a result
of the failure of a defaulting member to fulfill its
obligations to FICC. MBSD Rule 4 contains the same
loss allocation methodology.
11 Pursuant to GSD Rule 1, the term ‘‘Person’’
means a partnership, corporation, limited liability
corporation or other organization, entity, or
individual.
12 See MBSD Rule 2A, Section 1.
13 15 U.S.C. 78s(b)(2)(C).
VerDate Mar<15>2010
14:04 Jan 14, 2014
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applicable to such organization. Section
17A(b)(3)(B) 14 states that a clearing
agency shall not be registered unless the
Commission determines that the rules of
the clearing agency provide that certain
categories of parties may become
participants, subject to certain
provisions governing denials of
participation. RICs are one of the listed
categories of participants deemed
appropriate to the development of a
national system for the prompt and
accurate clearance and settlement of
securities transactions.15 Moreover,
Section 17A(b)(3)(F) of the Act 16
requires, among other things, that the
rules of a clearing agency registered
with the Commission be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions and, in general to protect
investors and the public interest.
The Commission finds that the
proposed rule change is consistent with
Section 17A(b)(3)(B) and (F) of the
Act.17 The proposal establishes
minimum financial requirements for
RICs, thus extending GSD membership
to participants in a category enumerated
by Section 17A(b)(3)(B). Furthermore, it
promotes the prompt and accurate
clearance and settlement of securities
transactions and protects investors and
the public interest by allowing FICC to
clear a greater market share of activity
of its existing members and nonmembers. 18
IV. Conclusion
On the basis of the foregoing, the
Commission concludes that the
proposal is consistent with the
requirements of the Act, particularly the
requirements of Section 17A of the
Act,19 and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,20 that the
proposed rule change (File No. SR–
FICC–2013–10) be and hereby is
approved.21
14 15
U.S.C. 78q–1(b)(3)(B).
Id.
16 15 U.S.C. 78q–1(b)(3)(F).
17 15 U.S.C. 78q–1(b)(3)(B) and (F).
18 This Order addresses whether the proposed
rule change is consistent with the Act. As such, this
Order does not address any relief that may be
necessary under the Investment Company Act of
1940 for an individual RIC to participate as a
Registered Investment Company Netting Member as
defined by GSD Rule 1. See footnote 5, supra.
19 15 U.S.C. 78q–1.
20 15 U.S.C. 78s(b)(2).
21 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).
15 See
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For the Commission by the Division of
Trading and Markets, pursuant todelegated
authority.22
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–00576 Filed 1–14–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71271; File No. SR–
NYSEArca–2013–122]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on Proposed Rule Change Relating to
the Use of Derivative Instruments by
PIMCO Total Return Exchange Traded
Fund
January 9, 2014.
On November 6, 2013, NYSE Arca,
Inc. filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change relating to the use
of derivative instruments by the PIMCO
Total Return Exchange Traded Fund
(‘‘Fund’’). The proposed rule change
was published for comment in the
Federal Register on November 26,
2013.3 The Commission received no
comment letters on the proposed rule
change.
Section 19(b)(2) of the Act 4 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The Commission is
extending this 45-day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change. The proposed rule change
would, among other things, permit the
continued listing and trading of shares
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 70905
(November 20, 2013), 78 FR 70610.
4 15 U.S.C. 78s(b)(2).
1 15
E:\FR\FM\15JAN1.SGM
15JAN1
Federal Register / Vol. 79, No. 10 / Wednesday, January 15, 2014 / Notices
of the Fund that seeks to invest in
certain derivative instruments,
including forwards, exchange-traded
and over-the-counter options contracts,
exchange-traded futures contracts,
options on futures contracts, and swap
agreements.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,5
designates February 24, 2014, as the
date by which the Commission should
either approve or disapprove or institute
proceedings to determine whether to
disapprove the proposed rule change
(File Number SR–NYSEArca-2013–122).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–00580 Filed 1–14–14; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71278; File No. SR–C2–
2013–043]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend the Fees Schedule
January 9, 2014.
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, 2013, C2 Options Exchange,
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
filed with the Securities and Exchange
Commission (the ‘‘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.
wreier-aviles on DSK5TPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Fees Schedule. The text of the proposed
rule change is available on the
Exchange’s Web site (https://
www.c2exchange.com/Legal/), at the
Exchange’s Office of the Secretary, and
at the Commission’s Public Reference
Room.
5 Id.
6 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
14:04 Jan 14, 2014
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
BILLING CODE 8011–01–P
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Jkt 232001
The Exchange proposes to amend its
Fees Schedule with regard to PULSe
Workstation routing (specifically, with
regard to routing from one PULSe
Workstation to another). By way of
background, the PULSe workstation is a
front-end order entry system designed
for use with respect to orders that may
be sent to the trading systems of C2. In
addition, the PULSe workstation
provides a user with the capability to
send options orders to other U.S.
options exchanges and/or stock orders
to other U.S. stock exchanges and
trading centers 3 (‘‘away-market
routing’’).4 PULSe Workstation users
also have the capability to send orders
between PULSe workstations. For
example, a user is able to send an order
from a PULSe workstation located in
New York to a PULSe workstation
located in Chicago. The ability to send
orders ‘‘PULSe-to-PULSe’’ is available
for use within a TPH (and any NonTPHs to whom the TPH makes the
PULSe workstation available) and
between TPHs that use the PULSe
workstation. A TPH may establish a
PULSe-to-PULSe connection with
3 A ‘‘trading center,’’ as provided under Rule
600(b)(78) of Regulation NMS, 17 CFR
242.600(b)(78), means a national securities
exchange or national securities association that
operates an SRO trading facility, an alternative
trading system, an exchange market maker, an OTC
market maker, or any other broker or dealer that
executes orders internally by trading as principal or
crossing orders as agent.
4 For a more detailed description of the PULSe
workstation and its other functionalities, see, e.g.,
Securities Exchange Act Release Nos. 63246
(November 4, 2010) 75 FR 69478 (November 12,
2010) (SR–C2–2010–007), 65279 (September 7,
2011), 76 FR 56824 (September 14, 2011) (SR–C2–
2011–020), 65482 (October 4, 2011), 76 FR 62879
(October 11, 2011) (SR–C2–2011–028), and 69991
(July 16, 2013), 78 FR 43956 (July 22, 2013) (SR–
C2–2013–026).
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2737
another TPH by contacting C2, who will
permission the connection. Before
setting up the connection, both TPHs
need to acknowledge in writing (e.g.,
including via email) their agreement to
establish the mutual connection.
The Exchange hereby proposes to
impose a monthly PULSe-to-PULSe
Routing fee of $50 for each receiving
TPH. This means that each TPH with a
PULSe Workstation that elects to receive
orders from another PULSe Workstation
will be assessed this fee. The Exchange
proposes to assess the fee to cover costs
associated with the development of
PULSe-to-PULSe routing, as well as the
upkeep of such systems. The Exchange
proposes to assess the fee to the
receiving TPH because, by electing to
receive PULSe-to-PULSe orders, the
receiving TPH then gets the ability to
execute those orders on the Exchange.
The proposed change is to take effect
on January 1, 2014.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.5 Specifically,
the Exchange believes the proposed rule
change is consistent with Section 6(b)(4)
of the Act,6 which requires that
Exchange rules provide for the equitable
allocation of reasonable dues, fees, and
other charges among its Trading Permit
Holders and other persons using its
facilities. The Exchange believes the
imposition of the PULSe-to-PULSe
Routing Fee is reasonable because it is
intended to cover the costs associated
with the development of PULSe-toPULSe routing, as well as the upkeep of
such systems. The Exchange believes
that it is equitable and not unfairly
discriminatory because it will be
assessed to all receiving TPHs that elect
to receive PULSe-to-PULSe orders. The
Exchange proposes to assess the fee to
the receiving TPH because, by electing
to receive PULSe-to-PULSe orders, the
receiving TPH then gets the ability to
execute those orders on the Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
C2 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. C2 does not believe
that the proposed rule change will
impose any burden on intramarket
5 15
6 15
E:\FR\FM\15JAN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
15JAN1
]]>Agencies
[Federal Register Volume 79, Number 10 (Wednesday, January 15, 2014)]
[Notices]
[Pages 2736-2737]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-00580]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71271; File No. SR-NYSEArca-2013-122]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of
Designation of a Longer Period for Commission Action on Proposed Rule
Change Relating to the Use of Derivative Instruments by PIMCO Total
Return Exchange Traded Fund
January 9, 2014.
On November 6, 2013, NYSE Arca, Inc. filed with the Securities and
Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change relating to the use of derivative
instruments by the PIMCO Total Return Exchange Traded Fund (``Fund'').
The proposed rule change was published for comment in the Federal
Register on November 26, 2013.\3\ The Commission received no comment
letters on the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 70905 (November 20,
2013), 78 FR 70610.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \4\ provides that, within 45 days of
the publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
Commission is extending this 45-day time period.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The Commission finds that it is appropriate to designate a longer
period within which to take action on the proposed rule change so that
it has sufficient time to consider the proposed rule change. The
proposed rule change would, among other things, permit the continued
listing and trading of shares
[[Page 2737]]
of the Fund that seeks to invest in certain derivative instruments,
including forwards, exchange-traded and over-the-counter options
contracts, exchange-traded futures contracts, options on futures
contracts, and swap agreements.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\5\ designates February 24, 2014, as the date by which the
Commission should either approve or disapprove or institute proceedings
to determine whether to disapprove the proposed rule change (File
Number SR-NYSEArca-2013-122).
---------------------------------------------------------------------------
\5\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-00580 Filed 1-14-14; 8:45 am]
BILLING CODE 8011-01-P
