Self-Regulatory Organizations; The Options Clearing Corporation; Order Approving Proposed Rule Change, As Modified by Amendment No. 1, To Provide OCC With Authority in Emergency Circumstances To Waive, Suspend, or Extend the Time for Compliance With Its By-Laws, Rules, Policies and Procedures, or any Other Rules Issued by OCC, 10581-10582 [2014-03971]
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Federal Register / Vol. 79, No. 37 / Tuesday, February 25, 2014 / Notices
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 (https://www.sec.gov/
rules/sro.shtml) or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICEEU–2014–04 on the subject line.
emcdonald on DSK67QTVN1PROD with NOTICES
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–ICEEU–2014–04. 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 (https://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
filings will also be available for
inspection and copying at the principal
office of ICE Clear Europe and on ICE
Clear Europe’s Web site at https://
www.theice.com/notices/
Notices.shtml?regulatoryFilings.
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–ICEEU–2014–04 and
should be submitted on or before March
18, 2014.
16 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
17:58 Feb 24, 2014
Jkt 232001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–03973 Filed 2–24–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71571; File No. SR–OCC–
2013–23]
Self-Regulatory Organizations; The
Options Clearing Corporation; Order
Approving Proposed Rule Change, As
Modified by Amendment No. 1, To
Provide OCC With Authority in
Emergency Circumstances To Waive,
Suspend, or Extend the Time for
Compliance With Its By-Laws, Rules,
Policies and Procedures, or any Other
Rules Issued by OCC
February 19, 2014.
I. Introduction
On December 27, 2013, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–OCC–2013–23 pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder.2 On January 8, 2014,
OCC filed Amendment No. 1 to the
proposed rule change.3 The proposed
rule change was published for comment
in the Federal Register on January 15,
2014.4 The Commission received no
comments concerning the proposed rule
change. For the reasons set forth below,
the Commission is approving the
proposed rule change.
II. Description
The rule change, as approved, amends
OCC’s by-laws to provide OCC with
authority in emergency circumstances,
subject to certain conditions, to waive or
suspend the operation of its by-laws,
rules, policies and procedures, or any
other rules issued by OCC (collectively,
‘‘Rules’’) or to extend any time fixed
thereby for the doing of any act or acts.
OCC previously sought action by the
Division of Trading and Markets on an
ad hoc basis whenever OCC needed to
temporarily waive or suspend certain of
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 1, OCC clarified its ability
to extend the time fixed in certain Rules for the
doing of any act or acts in emergency situations,
and made other technical changes.
4 Securities Exchange Act Release No. 71268
(January 9, 2014), 79 FR 2739 (January 15, 2014)
(SR–OCC–2013–23).
2 17
PO 00000
Frm 00116
Fmt 4703
Sfmt 4703
10581
its Rules, or extend the time for doing
any act or acts specified by its Rules, in
order to help facilitate the national
system for the prompt and accurate
clearance and settlement of securities
transactions.5 The rule change generally
aligns OCC’s Rules with those of other
registered clearing agencies, which
allow those clearing agencies to waive
or suspend their rules, or extend the
time fixed thereby for performing any
act or acts, in similar circumstances.
Under the rule change, as approved,
OCC’s Board of Directors, Chairman,6
Management Vice Chairman, or
President is authorized either to waive
or suspend the Rules or extend any time
fixed by the Rules for the doing of any
act or acts if it is believed that an
emergency exists and such extension,
waiver, or suspension is necessary or
advisable to protect OCC or allow it to
continue to facilitate the prompt and
accurate clearance and settlement of
confirmed transactions and to provide
its services in a safe and sound manner.
If a determination to invoke these
emergency powers is made by anyone
other than by the Board of Directors, the
Board of Directors must be notified as
soon as practicable.
The rule change, as approved,
requires OCC to notify the Commission
and the CFTC within two hours after
exercising its emergency powers.7 OCC
is further required to provide the
Commission and the CFTC as soon as
practicable, but not later than three
calendar days after exercising its
emergency powers, with a report setting
out the nature of the emergency, the
identity of the person or persons who
invoked OCC’s emergency powers, and
the rationale for doing so.
OCC is permitted to continue the
emergency action for up to thirty
calendar days unless the Commission or
the CFTC, as applicable, objects in
writing. If OCC wishes to continue the
emergency action beyond the thirty-day
period, then OCC is required to file a
5 For instance, in one case, OCC needed to waive
certain of its rules temporarily to facilitate the
transfer and assignment of the correspondent
securities-clearing business of one of its clearing
members to another. The Division of Trading and
Markets issued a No-Action Letter advising OCC
that the Division would not recommend an
enforcement action if OCC waived its rules under
those circumstances. The Options Clearing
Corporation, SEC No-Action Letter, (June 4, 2012),
available at https://www.sec.gov/divisions/
marketreg/mr-noaction/2012/occ060412.pdf.
6 Pursuant to Article IV, Section 6 of OCC’s ByLaws, the Chairman of the Board is also the
Executive Chairman.
7 The Commission’s approval of this rule change
does not relieve OCC of its obligation to submit a
filing to the Commission pursuant to Section
806(e)(1) of Title VIII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act when
appropriate. See 12 U.S.C. 5465(e)(1).
E:\FR\FM\25FEN1.SGM
25FEN1
10582
Federal Register / Vol. 79, No. 37 / Tuesday, February 25, 2014 / Notices
emcdonald on DSK67QTVN1PROD with NOTICES
corresponding proposed rule change
with the Commission, the CFTC, or both
during this thirty-day period. In that
case, the emergency action would
remain in effect while the agency or
agencies review the corresponding
proposed rule change. If either the
Commission or the CFTC objects to the
proposed rule change in writing, OCC is
required to discontinue the emergency
extension, waiver, or suspension of its
rules.
III. Discussion
Section 19(b)(2)(C) of the Act 8 directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if it finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
such organization. Section 17A(b)(3)(F)
of the Act 9 requires that the rules of a
registered clearing agency be designed
to, among other things, promote the
prompt and accurate clearance and
settlement of securities transactions, as
well as foster cooperation and
coordination amongst other persons
engaged in the clearance and settlement
of securities transactions.
The Commission believes that the
proposed rule change is consistent with
the requirements of Section 17A of the
Act and the rules and regulations
thereunder applicable to OCC. By giving
OCC the ability to respond promptly in
the event of an emergency, the proposed
rule change will help to minimize the
risk of a disruption to OCC’s clearance
and settlement services. This will help
facilitate the prompt clearance and
settlement of securities transactions,
and will also enable OCC to coordinate
its actions with those of other clearing
agencies that already possess emergency
powers similar to those at issue here.
Further, the proposed rule change
circumscribes OCC’s emergency powers
by requiring it to notify the Commission
and the CFTC whenever OCC invokes
those powers, and by further requiring
OCC to discontinue any changes made
under those powers if the Commission
or the CFTC, as applicable, objects.
These procedural safeguards will help
to ensure that OCC exercises its
emergency powers only in a manner
that is consistent with the requirements
of the Act and the rules and regulations
thereunder.
IV. Conclusion
On the basis of the foregoing, the
Commission concludes that the
proposal is consistent with the
8 15
9 15
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1(b)(3)(F).
VerDate Mar<15>2010
17:58 Feb 24, 2014
Jkt 232001
requirements of the Act, particularly the
requirements of Section 17A of the
Act 10 and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that
proposed rule change SR–OCC–2013–
23, as amended, be and hereby is
approved.12
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–03971 Filed 2–24–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71575; File No. SR–FINRA–
2013–054]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Granting
Approval of Proposed Rule Change
Relating to a Capacity Management
Plan
February 19, 2014.
I. Introduction
On December 24, 2013, Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
adopt a Capacity Management Plan
(‘‘Plan’’) for the Alternative Display
Facility (‘‘ADF’’) and to amend the ADF
Certification Record (‘‘Certification’’).
The proposed rule change was
published for comment in the Federal
Register on January 8, 2014.3 The
Commission received no comments on
the proposed rule change. This order
grants approval of the proposed rule
change.
II. Description of the Proposed Rule
Change
The ADF is a quotation collection and
trade reporting facility that provides
10 15
U.S.C. 78q–1.
U.S.C. 78s(b)(2).
12 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).
13 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 71224
(Jan. 2, 2014), 79 FR 1414 (‘‘Notice’’).
11 15
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
ADF Market Participants the ability to
post quotations, display orders and
report transactions in NMS stocks 4 for
submission to the Securities Information
Processors (‘‘SIPs’’) for consolidation
and dissemination to vendors and other
market participants. In addition, the
ADF delivers real-time data to FINRA
for regulatory purposes, including
enforcement of requirements imposed
by Regulation NMS.5
To ensure that the ADF has sufficient
capacity to handle the volume of quote,
order and trade data submitted to the
ADF without maintaining unused data
capacity, FINRA proposes to adopt the
Plan for those FINRA members that opt
to utilize the ADF for quoting and trade
reporting. According to FINRA, the
proposed Plan is similar to the approach
of other data plans, notably the
Consolidated Tape Association Plan
(‘‘CTA Plan’’) and the Consolidated
Quotation Plan (‘‘CQ Plan’’; together,
‘‘CTA/CQ Plans’’),6 which serve as the
consolidated data plans for securities
listed on the New York Stock Exchange,
BATS, NYSE Arca, NYSE MKT and
other regional exchange-listed
securities.7
Pursuant to the Plan, each ADF
Trading Center would complete an
initial ADF Trading Center Capacity
Certification process,8 including testing
its connectivity to the ADF. In addition,
each ADF Trading Center would submit
volume projections for current and
future peak data reporting levels on a
quarterly basis, and on demand from
FINRA.9 Specifically, the Plan would
provide a timeframe by which ADF
Trading Centers submit initial and final
volume projections for the next two
calendar quarters, with final volume
projections tested and certified by
FINRA in the event of a capacity
upgrade. The Plan also would provide
ADF Trading Centers with the ability to
increase and decrease their capacity
projections for the second quarter,
subject to certain limitations, in the
event that their actual capacity usage
deviates from their projected capacity
usage. In addition, under the Plan,
FINRA would honor an ADF Trading
Center’s capacity requests and build out
to support the ADF Trading Center’s
4 See
17 CFR 242.600(b)(47).
17 CFR 242.600 et seq.
6 The CTA/CQ Plans and the Unlisted Trading
Privileges Plan are collectively referred to as the
‘‘NMS data plans.’’
7 See Notice, supra note 3 at 1414.
8 Each ADF Trading Center would also be
required to complete an annual recertification.
9 ADF Trading Centers would submit separate
volume projections for CTA securities and UTP
securities, and project their volume for quotations,
media trade reports, total trade reports, and order
reports.
5 See
E:\FR\FM\25FEN1.SGM
25FEN1
]]>Agencies
[Federal Register Volume 79, Number 37 (Tuesday, February 25, 2014)]
[Notices]
[Pages 10581-10582]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03971]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71571; File No. SR-OCC-2013-23]
Self-Regulatory Organizations; The Options Clearing Corporation;
Order Approving Proposed Rule Change, As Modified by Amendment No. 1,
To Provide OCC With Authority in Emergency Circumstances To Waive,
Suspend, or Extend the Time for Compliance With Its By-Laws, Rules,
Policies and Procedures, or any Other Rules Issued by OCC
February 19, 2014.
I. Introduction
On December 27, 2013, The Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'')
proposed rule change SR-OCC-2013-23 pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder.\2\ On January 8, 2014, OCC filed Amendment No. 1 to the
proposed rule change.\3\ The proposed rule change was published for
comment in the Federal Register on January 15, 2014.\4\ The Commission
received no comments concerning the proposed rule change. For the
reasons set forth below, the Commission is approving the proposed rule
change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, OCC clarified its ability to extend the
time fixed in certain Rules for the doing of any act or acts in
emergency situations, and made other technical changes.
\4\ Securities Exchange Act Release No. 71268 (January 9, 2014),
79 FR 2739 (January 15, 2014) (SR-OCC-2013-23).
---------------------------------------------------------------------------
II. Description
The rule change, as approved, amends OCC's by-laws to provide OCC
with authority in emergency circumstances, subject to certain
conditions, to waive or suspend the operation of its by-laws, rules,
policies and procedures, or any other rules issued by OCC
(collectively, ``Rules'') or to extend any time fixed thereby for the
doing of any act or acts. OCC previously sought action by the Division
of Trading and Markets on an ad hoc basis whenever OCC needed to
temporarily waive or suspend certain of its Rules, or extend the time
for doing any act or acts specified by its Rules, in order to help
facilitate the national system for the prompt and accurate clearance
and settlement of securities transactions.\5\ The rule change generally
aligns OCC's Rules with those of other registered clearing agencies,
which allow those clearing agencies to waive or suspend their rules, or
extend the time fixed thereby for performing any act or acts, in
similar circumstances.
---------------------------------------------------------------------------
\5\ For instance, in one case, OCC needed to waive certain of
its rules temporarily to facilitate the transfer and assignment of
the correspondent securities-clearing business of one of its
clearing members to another. The Division of Trading and Markets
issued a No-Action Letter advising OCC that the Division would not
recommend an enforcement action if OCC waived its rules under those
circumstances. The Options Clearing Corporation, SEC No-Action
Letter, (June 4, 2012), available at https://www.sec.gov/divisions/marketreg/mr-noaction/2012/occ060412.pdf.
---------------------------------------------------------------------------
Under the rule change, as approved, OCC's Board of Directors,
Chairman,\6\ Management Vice Chairman, or President is authorized
either to waive or suspend the Rules or extend any time fixed by the
Rules for the doing of any act or acts if it is believed that an
emergency exists and such extension, waiver, or suspension is necessary
or advisable to protect OCC or allow it to continue to facilitate the
prompt and accurate clearance and settlement of confirmed transactions
and to provide its services in a safe and sound manner. If a
determination to invoke these emergency powers is made by anyone other
than by the Board of Directors, the Board of Directors must be notified
as soon as practicable.
---------------------------------------------------------------------------
\6\ Pursuant to Article IV, Section 6 of OCC's By-Laws, the
Chairman of the Board is also the Executive Chairman.
---------------------------------------------------------------------------
The rule change, as approved, requires OCC to notify the Commission
and the CFTC within two hours after exercising its emergency powers.\7\
OCC is further required to provide the Commission and the CFTC as soon
as practicable, but not later than three calendar days after exercising
its emergency powers, with a report setting out the nature of the
emergency, the identity of the person or persons who invoked OCC's
emergency powers, and the rationale for doing so.
---------------------------------------------------------------------------
\7\ The Commission's approval of this rule change does not
relieve OCC of its obligation to submit a filing to the Commission
pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act when appropriate. See 12
U.S.C. 5465(e)(1).
---------------------------------------------------------------------------
OCC is permitted to continue the emergency action for up to thirty
calendar days unless the Commission or the CFTC, as applicable, objects
in writing. If OCC wishes to continue the emergency action beyond the
thirty-day period, then OCC is required to file a
[[Page 10582]]
corresponding proposed rule change with the Commission, the CFTC, or
both during this thirty-day period. In that case, the emergency action
would remain in effect while the agency or agencies review the
corresponding proposed rule change. If either the Commission or the
CFTC objects to the proposed rule change in writing, OCC is required to
discontinue the emergency extension, waiver, or suspension of its
rules.
III. Discussion
Section 19(b)(2)(C) of the Act \8\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if it
finds that the proposed rule change is consistent with the requirements
of the Act and the rules and regulations thereunder applicable to such
organization. Section 17A(b)(3)(F) of the Act \9\ requires that the
rules of a registered clearing agency be designed to, among other
things, promote the prompt and accurate clearance and settlement of
securities transactions, as well as foster cooperation and coordination
amongst other persons engaged in the clearance and settlement of
securities transactions.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2)(C).
\9\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The Commission believes that the proposed rule change is consistent
with the requirements of Section 17A of the Act and the rules and
regulations thereunder applicable to OCC. By giving OCC the ability to
respond promptly in the event of an emergency, the proposed rule change
will help to minimize the risk of a disruption to OCC's clearance and
settlement services. This will help facilitate the prompt clearance and
settlement of securities transactions, and will also enable OCC to
coordinate its actions with those of other clearing agencies that
already possess emergency powers similar to those at issue here.
Further, the proposed rule change circumscribes OCC's emergency powers
by requiring it to notify the Commission and the CFTC whenever OCC
invokes those powers, and by further requiring OCC to discontinue any
changes made under those powers if the Commission or the CFTC, as
applicable, objects. These procedural safeguards will help to ensure
that OCC exercises its emergency powers only in a manner that is
consistent with the requirements of the Act and the rules and
regulations thereunder.
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 \10\ and the rules and
regulations thereunder.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\11\ that proposed rule change SR-OCC-2013-23, as amended, be and
hereby is approved.\12\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(2).
\12\ 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).
---------------------------------------------------------------------------
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
For the Commission by the Division of Trading and Markets, pursuant
to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03971 Filed 2-24-14; 8:45 am]
BILLING CODE 8011-01-P
