Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change, as Modified by Amendments No. 1 and No. 2 Thereto, To List and Trade Shares of Nine Series of the IndexIQ Active ETF Trust Under NYSE Arca Equities Rule 8.600, 32008-32009 [2014-12768]
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32008
Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Notices
the Commission believes that
Amendment No. 1 is consistent with the
Act.
VI. Accelerated Approval
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,114 for approving the proposed rule
change, as amended by Amendment No.
1 thereto, prior to 30th day after
publication of Amendment No. 1 in the
Federal Register. As discussed above,
Amendment No. 1 responds to one
concern raised by a commenter by
partially amending FINRA’s proposed
rule change to clarify that FINRA
intends the deadline for correcting noncompliant documents to be 30 days
from the time the party receives notice
of non-compliance from FINRA. The
scope of the amendment adds clarity to
one aspect of the proposal, and does not
raise any novel regulatory concerns.
Furthermore, accelerated approval
would allow FINRA to institute the
proposed rule change, as amended by
Amendment No. 1, without delay.
Accordingly, the Commission finds that
good cause exists to approve the
proposed rule change, as modified by
Amendment No. 1, on an accelerated
basis.
VII. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,115 that the
proposed rule change (SR–FINRA–
2014–008), as modified by Amendment
No. 1, be and hereby is approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.116
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–12771 Filed 6–2–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72267; File No. SR–CBOE–
2014–031]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Withdrawal of
a Proposed Rule Change To Amend
the Fees Schedule
sroberts on DSK4SPTVN1PROD with NOTICES
May 28, 2014.
U.S.C. 78s(b)(2).
115 Id.
116 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.3
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–12770 Filed 6–2–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72265; File No. SR–
NYSEArca–2013–127]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on a Proposed Rule Change, as
Modified by Amendments No. 1 and
No. 2 Thereto, To List and Trade
Shares of Nine Series of the IndexIQ
Active ETF Trust Under NYSE Arca
Equities Rule 8.600
May 28, 2014.
On November 18, 2013, NYSE Arca,
Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) 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
list and trade shares of the IQ Long/
Short Alpha ETF, IQ Bear U.S. Large
Cap ETF, IQ Bear U.S. Small Cap ETF,
IQ Bear International ETF, IQ Bear
Emerging Markets ETF, IQ Bull U.S.
Large Cap ETF, IQ Bull U.S. Small Cap
ETF, IQ Bull International ETF and IQ
Bull Emerging Markets ETF
(collectively, ‘‘Funds’’). On November
26, 2013, the Exchange filed
Amendment No. 1 to the proposed rule
change.3 The proposed rule change, as
modified by Amendment No. 1, was
1 15
On March 28, 2014, Chicago Board
Options Exchange, Incorporated (the
‘‘Exchange’’ or ‘‘CBOE’’) filed with the
Securities and Exchange Commission
114 15
(the ‘‘Commission’’), pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934,1 and Rule 19b–
4 thereunder,2 a proposed rule change
to adopt a fee of $50 per month per
login ID for off-floor PULSe Workstation
users that elect to access a Complex
Order Book Feed. On May 27, 2014, the
Exchange withdrew the proposed rule
change (SR–CBOE–2014–031).
17:35 Jun 02, 2014
Jkt 232001
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 clarifies (i) how certain
holdings will be valued for purposes of calculating
a fund’s net asset value, and (ii) where investors
will be able to obtain pricing information for certain
underlying holdings.
2 17
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
published for comment in the Federal
Register on December 4, 2013.4
On January 15, 2014, pursuant to
Section 19(b)(2) of the Act,5 the
Commission designated a longer period
within which to either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether to
disapprove the proposed rule change.6
On March 4, 2014, the Commission
instituted proceedings to determine
whether to approve or disapprove the
proposed rule change.7 On April 11,
2014, the Exchange submitted
Amendment No. 2 to the proposed rule
change.8 The Commission received no
comments on the proposed rule change.
Section 19(b)(2) of the Act 9 provides
that, after initiating disapproval
proceedings, the Commission shall issue
an order approving or disapproving the
proposed rule change not later than 180
days after the date of publication of
notice of filing of the proposed rule
change. The Commission may extend
the period for issuing an order
approving or disapproving the proposed
rule change, however, by not more than
60 days if the Commission determines
that a longer period is appropriate and
publishes the reasons for such
determination. The proposed rule
change was published for notice and
comment in the Federal Register on
December 4, 2013. June 2, 2014 is 180
days from that date, and August 1, 2014
is 240 days from that date.
4 Securities Exchange Act Release No. 70954
(November 27, 2013), 78 FR 72955 (‘‘Notice’’).
5 15 U.S.C. 78s(b)(2).
6 See Securities Exchange Act Release No. 71309,
79 FR 3657 (January 22, 2014). The Commission
determined that it was 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. Accordingly,
the Commission designated March 4, 2014 as the
date by which it should approve, disapprove, or
institute proceedings to determine whether to
disapprove the proposed rule change.
7 See Securities Exchange Act Release No. 71645,
79 FR 13349 (March 10, 2014).
8 In Amendment No. 2, the Exchange provided
additional details describing how the contents of
the portfolio composition of the Fund would be
disclosed on a daily basis. Specifically, the Fund
will disclose on the Fund’s Web site the following
information regarding each portfolio holding, as
applicable to the type of holding: ticker symbol,
CUSIP number or other identifier, if any; a
description of the holding (including the type of
holding, such as the type of swap); the identity of
the security, commodity, index or other asset or
instrument underlying the holding, if any; for
options, the option strike price; quantity held (as
measured by, for example, par value, notional value
or number of shares, contracts or units); maturity
date, if any; coupon rate, if any; effective date, if
any; market value of the holding; and the
percentage weighting of the holding in the
applicable Fund’s portfolio.
9 15 U.S.C. 78s(b)(2).
E:\FR\FM\03JNN1.SGM
03JNN1
Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Notices
The Commission finds it appropriate
to designate a longer period within
which to issue an order approving or
disapproving the proposed rule change
so that it has sufficient time to consider
this proposed rule change. The
proposed rule change would permit the
listing and trading of shares of the
Funds, which intend to invest primarily
in exchange-traded funds (‘‘ETFs’’),
swap agreements, options contracts and
futures contracts. Four of the Funds
would use the leverage inherent in
swaps and other derivatives to give the
funds 200% exposure to their
investments.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the
Act,10 designates August 1, 2014 as the
date by which the Commission should
either approve or disapprove the
proposed rule change (File Number SR–
NYSEArca–2013–127), as modified by
Amendments No. 1 and No. 2 thereto.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–12768 Filed 6–2–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72266; File No. SR–OCC–
2014–10]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Require
That Intraday Margin Be Collected and
Margin Assets Not Be Withdrawn
When a Clearing Member’s Reasonably
Anticipated Settlement Obligations to
OCC Would Exceed the Liquidity
Resources Available to OCC To Satisfy
Such Settlement Obligations
sroberts on DSK4SPTVN1PROD with NOTICES
May 28, 2014.
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 May 19,
2014, 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. OCC filed
the proposal pursuant to Section
19(b)(3)(A) of the Act 3 and Rule 19b–
4(f)(1) thereunder 4 so that the proposal
was effective upon filing with the
Commission. 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 OCC
would amend OCC’s Rules to require
(rather than continue to permit as a
discretionary determination) that
intraday margin be collected and margin
assets not be withdrawn when a clearing
member’s reasonably anticipated
settlement obligations to OCC would
exceed the liquidity resources available
to OCC to satisfy such settlement
obligations.
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
The purpose of the proposed rule
change is to modify existing OCC Rules
608 and 609 (collectively, the ‘‘Rules’’),
which address the withdrawal of margin
and deposit of intra-day margin,
respectively. More specifically, OCC is
proposing to modify these Rules to
require that intraday margin be
collected and to preclude margin assets
from being withdrawn, to the extent that
a clearing member’s reasonably
anticipated settlement obligations to
OCC would exceed the liquidity
resources available to OCC to satisfy
such settlement obligations (a
‘‘Liquidity Situation’’).
OCC Rule 608 (‘‘Rule 608’’) already
permits OCC to prohibit margin
withdrawals in a Liquidity Situation,
and OCC Rule 609 (‘‘Rule 609’’) already
permits OCC to require the collection of
intraday margin in a Liquidity Situation.
In 2012,5 OCC adopted an interpretation
10 Id.
11 17
CFR 200.30–3(a)(57).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17
CFR 240.19b–4(f)(1).
Securities Exchange Act Release No. 68308
(November 28, 2012), 77 FR 71848 (December 4,
2012) (SR–OCC–2012–21).
1 15
VerDate Mar<15>2010
17:35 Jun 02, 2014
5 See
Jkt 232001
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
32009
under each of the Rules to put clearing
members on notice that OCC may refuse
a margin withdrawal request or request
additional intra-day margin where a
clearing member’s future settlement
obligations could result in a need for
liquidity in excess of liquidity resources
available to OCC. In adopting the
interpretations, OCC made it clear that
such action might be taken even though
OCC has made no adverse
determination as to the financial
condition of the clearing member,6 the
market risk of the clearing member’s
positions, or the adequacy of the
clearing member’s total overall margin
deposit in the accounts in question.
OCC further identified that a
circumstance in which OCC might
desire to reject a margin withdrawal
request or make an intra-day margin call
to ensure it had sufficient liquidity
concerned the ‘‘unwinding’’ of a ‘‘box
spread’’ position. A box spread position
involves a combination of two long and
two short options on the same
underlying interest with the same
expiration date that results in an
amount to be paid or received upon
settlement that is fixed regardless of
fluctuations in the price of the
underlying interest. Box spreads can be
used as financing transactions, and they
may require very large fixed payments
upon expiration. In this situation, if
much of the margin deposited by the
relevant clearing member is in the form
of common stock and if the clearing
member failed to make the settlement
payment, the available liquidity
resources might be insufficient to cover
the settlement obligation. In
anticipation of this settlement, OCC
might therefore require the clearing
member to deposit intra-day margin in
the form of cash, or reject a requested
withdrawal of cash or U.S. Government
securities, so that liquidity resources
would be sufficient to cover the clearing
member’s obligations. Under the
adopted interpretations, OCC would
always include margin assets of the
relevant clearing member in the form of
cash in determining available liquidity
resources and could, in its discretion,
consider the amount of margin assets in
the form of highly liquid U.S.
Government securities and/or the
amount that OCC would be able to
borrow on short order.
Since the adoption of these
interpretations, OCC has effected margin
calls and precluded clearing members
from withdrawing liquid forms of
margin assets in three instances, each of
which involved the ‘‘unwind’’ of a box
6 Id
at 71849.
E:\FR\FM\03JNN1.SGM
03JNN1
]]>Agencies
[Federal Register Volume 79, Number 106 (Tuesday, June 3, 2014)]
[Notices]
[Pages 32008-32009]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-12768]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72265; File No. SR-NYSEArca-2013-127]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of
Designation of a Longer Period for Commission Action on a Proposed Rule
Change, as Modified by Amendments No. 1 and No. 2 Thereto, To List and
Trade Shares of Nine Series of the IndexIQ Active ETF Trust Under NYSE
Arca Equities Rule 8.600
May 28, 2014.
On November 18, 2013, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') 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 list and trade shares of the
IQ Long/Short Alpha ETF, IQ Bear U.S. Large Cap ETF, IQ Bear U.S. Small
Cap ETF, IQ Bear International ETF, IQ Bear Emerging Markets ETF, IQ
Bull U.S. Large Cap ETF, IQ Bull U.S. Small Cap ETF, IQ Bull
International ETF and IQ Bull Emerging Markets ETF (collectively,
``Funds''). On November 26, 2013, the Exchange filed Amendment No. 1 to
the proposed rule change.\3\ The proposed rule change, as modified by
Amendment No. 1, was published for comment in the Federal Register on
December 4, 2013.\4\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 clarifies (i) how certain holdings will be
valued for purposes of calculating a fund's net asset value, and
(ii) where investors will be able to obtain pricing information for
certain underlying holdings.
\4\ Securities Exchange Act Release No. 70954 (November 27,
2013), 78 FR 72955 (``Notice'').
---------------------------------------------------------------------------
On January 15, 2014, pursuant to Section 19(b)(2) of the Act,\5\
the Commission designated a longer period within which to either
approve the proposed rule change, disapprove the proposed rule change,
or institute proceedings to determine whether to disapprove the
proposed rule change.\6\ On March 4, 2014, the Commission instituted
proceedings to determine whether to approve or disapprove the proposed
rule change.\7\ On April 11, 2014, the Exchange submitted Amendment No.
2 to the proposed rule change.\8\ The Commission received no comments
on the proposed rule change.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2).
\6\ See Securities Exchange Act Release No. 71309, 79 FR 3657
(January 22, 2014). The Commission determined that it was
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. Accordingly, the Commission
designated March 4, 2014 as the date by which it should approve,
disapprove, or institute proceedings to determine whether to
disapprove the proposed rule change.
\7\ See Securities Exchange Act Release No. 71645, 79 FR 13349
(March 10, 2014).
\8\ In Amendment No. 2, the Exchange provided additional details
describing how the contents of the portfolio composition of the Fund
would be disclosed on a daily basis. Specifically, the Fund will
disclose on the Fund's Web site the following information regarding
each portfolio holding, as applicable to the type of holding: ticker
symbol, CUSIP number or other identifier, if any; a description of
the holding (including the type of holding, such as the type of
swap); the identity of the security, commodity, index or other asset
or instrument underlying the holding, if any; for options, the
option strike price; quantity held (as measured by, for example, par
value, notional value or number of shares, contracts or units);
maturity date, if any; coupon rate, if any; effective date, if any;
market value of the holding; and the percentage weighting of the
holding in the applicable Fund's portfolio.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \9\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of filing of the proposed rule
change. The Commission may extend the period for issuing an order
approving or disapproving the proposed rule change, however, by not
more than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on December 4, 2013. June 2, 2014 is 180 days from
that date, and August 1, 2014 is 240 days from that date.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
[[Page 32009]]
The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change so that it has sufficient time to consider this proposed
rule change. The proposed rule change would permit the listing and
trading of shares of the Funds, which intend to invest primarily in
exchange-traded funds (``ETFs''), swap agreements, options contracts
and futures contracts. Four of the Funds would use the leverage
inherent in swaps and other derivatives to give the funds 200% exposure
to their investments.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\10\ designates August 1, 2014 as the date by which the Commission
should either approve or disapprove the proposed rule change (File
Number SR-NYSEArca-2013-127), as modified by Amendments No. 1 and No. 2
thereto.
---------------------------------------------------------------------------
\10\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-12768 Filed 6-2-14; 8:45 am]
BILLING CODE 8011-01-P
