Self-Regulatory Organizations; ICE Clear Credit LLC; Order Granting Approval of Proposed Rule Change To Revise ICC End-of-Day Price Discovery Policies and Procedures, 73924-73925 [2014-29181]
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Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices
change should be approved or
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEMKT–2014–99 on the subject line.
Paper Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
• 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–NYSEMKT–2014–99. 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 Section, 100 F Street NE.,
Washington, DC 20549–1090 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing will also be available for
inspection and copying at the NYSE’s
principal office and on its Internet Web
site at www.nyse.com. 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–
NYSEMKT–2014–99 and should be
submitted on or before January 2, 2015.
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16:57 Dec 11, 2014
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–29103 Filed 12–11–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73791; File No. SR–Phlx–
2014–66]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Designation of Longer Period for
Commission Action on Proposed Rule
Change To Adopt New Exchange Rule
1081, Solicitation Mechanism, To
Introduce a New Electronic Solicitation
Mechanism
December 8, 2014.
on the proposed rule change. 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 and take action on the
Exchange’s proposed rule change.
Accordingly, pursuant to Section
19(b)(2)(A)(ii)(I) of the Act 5 and for the
reasons stated above, the Commission
designates January 29, 2015, 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 No. SR–Phlx–2014–66).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–29182 Filed 12–11–14; 8:45 am]
BILLING CODE 8011–01–P
On October 14, 2014, NASDAQ OMX
PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) 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 to adopt new Exchange Rule
1081, Solicitation Mechanism, to
introduce a new electronic solicitation
mechanism pursuant to which a
member can electronically submit all-ornone orders of 500 contracts or more (or,
in the case of mini options, 5000
contracts or more) the member
represents as agent against contra orders
the member solicited. The proposed rule
change was published for comment in
the Federal Register on October 31,
2014.3 The Commission has received no
comment letters on the proposal.
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 these
proposed rule changes should be
disapproved. The 45th day for this filing
is December 15, 2014.
The Commission is extending the 45day time period for Commission action
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73790; File No. SR–ICC–
2014–17]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Order Granting
Approval of Proposed Rule Change To
Revise ICC End-of-Day Price Discovery
Policies and Procedures
December 8, 2014.
I. Introduction
On October 17, 2014, ICE Clear Credit
LLC (‘‘ICC’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change SR–ICC–2014–17 pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder.2 The proposed rule
change was published for comment in
the Federal Register on November 3,
2014.3 The Commission received no
comment letters regarding the proposed
change. For the reasons discussed
below, the Commission is granting
approval of the proposed rule change.
II. Description of the Proposed Rule
Change
ICC is proposing this change to revise
the ICC End-of-Day Price Discovery
Policies and Procedures to incorporate
enhancements to its price discovery
5 15
14 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. 73441
(October 27, 2014), 79 FR 64862.
4 15 U.S.C. 78s(b)(2).
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Frm 00046
Fmt 4703
Sfmt 4703
U.S.C. 78s(b)(2)(A)(ii)(I).
CFR 200.30–3(a)(31).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 34–73451
(Oct. 28, 2014), 79 FR 65280 (Nov. 3, 2014) (SR–
ICC–2014–17).
6 17
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Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices
process. This revision does not require
any changes to the ICC Clearing Rules.
According to ICC, it utilizes a ‘‘cross
and lock’’ algorithm as part of its price
discovery process. As described by ICC,
under this algorithm, bids and offers
derived from Clearing Participant
(‘‘CP’’) submissions are matched by
sorting them from highest to lowest and
lowest to highest levels, respectively.
This sorting process pairs the CP
submitting the highest bid price with
the CP submitting the lowest offer price,
the CP submitting the second highest
bid price with the CP submitting the
second-lowest offer price, and so on.
The algorithm then identifies crossed
and/or locked markets. Crossed markets
are the Clearing Participant pairs
generated by the sorting and ranking
process for which the bid price of one
Clearing Participant is above the offer
price of the matched Clearing
Participant. The algorithm identifies
locked markets, where the bid and the
offer are equal, in a similar fashion. The
mid-point of the first non-crossed, nonlocked matched market is, as stated by
ICC, the final end-of-day level (with
additional steps taken to remove offmarket submissions from influencing
the final level). According to ICC, this
process captures the market dynamics of
trading; however, final pricing levels are
ultimately determined by a single bid
and a single offer, which results in the
ability for one submission to influence
the outcome.
ICC proposes enhancements to its
methodology to improve the consistency
of prices and reduce the sensitivity of
the final level to a single Clearing
Participant’s submission. ICC states that
under the new ‘‘cross and lock’’
methodology, the average of the midpoints of all non-crossed, non-locked
matched markets that are less than or
equal to one bid-offer width is used as
the final level (with additional steps
taken to remove off-market submissions
from influencing the final level). ICC
states that, as a result, prices are less
sensitive to outlying submissions. ICC
also proposes additional language in the
ICC End-of-Day Price Discovery Policies
and Procedures to clarify existing
policies and practices, including, but
not limited to, language to clarify the
existing pricing methodology’s
treatment of identical crossed or locked
matched market bids or offers.
III. Discussion and Commission
Findings
Section 19(b)(2)(C) of the Act 4 directs
the Commission to approve a proposed
rule change of a self-regulatory
4 15
U.S.C. 78s(b)(2)(C).
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16:57 Dec 11, 2014
Jkt 235001
organization if the Commission finds
that such proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to such selfregulatory organization. Section
17A(b)(3)(F) of the Act 5 requires, among
other things, that the rules of a clearing
agency are designed to promote the
prompt and accurate clearance and
settlement of securities transactions
and, to the extent applicable, derivative
agreements, contracts, and transactions,
to assure the safeguarding of securities
and funds which are in the custody or
control of the clearing agency or for
which it is responsible and, in general,
to protect investors and the public
interest.
The Commission finds that the
proposed rule change is consistent with
Section 17A of the Act 6 and the rules
thereunder applicable to ICC. The
revised ICC End-of-Day Price Discovery
Policies and Procedures will reduce the
sensitivity of the final price level to a
single Clearing Participant’s submission,
resulting in more consistent day-overday end-of-day levels. The proposed
rule change is therefore reasonably
expected to provide a pricing
methodology to more accurately reflect
the market level. As such, the
Commission believes that the changes
will promote the prompt and accurate
settlement of securities and derivatives
transactions, and therefore are
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to ICC, in
particular, Section 17(A)(b)(3)(F).
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 7
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (File No. SR–ICC–
2014–17) be, and hereby is, approved.9
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–29181 Filed 12–11–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73781; File No. SR–EDGA–
2014–31]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Related to Fees for Use
of EDGA Exchange, Inc.
December 8, 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 November
25, 2014, EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) 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 Exchange has
designated the proposed rule change as
one establishing or changing a member
due, fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A)(ii)
of the Act3 and Rule 19b–4(f)(2)
thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission. 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 filed a proposal to
amend the fee schedule applicable to
Members 5 of the Exchange pursuant to
EDGA Rules 15.1(a) and (c) (‘‘Fee
Schedule’’). Changes to the fee schedule
pursuant to this proposal are effective
upon filing.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.directedge.com, at the
principal office of the Exchange, and at
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer, or any person associated
with a registered broker or dealer, that has been
admitted to membership in the Exchange. A
Member will have the status of a ‘‘member’’ of the
Exchange as that term is defined in Section 3(a)(3)
of the Act.’’ See Exchange Rule 1.5(n).
1 15
5 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1.
7 15 U.S.C. 78q–1.
8 15 U.S.C. 78s(b)(2).
9 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).
6 15
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12DEN1
Agencies
[Federal Register Volume 79, Number 239 (Friday, December 12, 2014)]
[Notices]
[Pages 73924-73925]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-29181]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73790; File No. SR-ICC-2014-17]
Self-Regulatory Organizations; ICE Clear Credit LLC; Order
Granting Approval of Proposed Rule Change To Revise ICC End-of-Day
Price Discovery Policies and Procedures
December 8, 2014.
I. Introduction
On October 17, 2014, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change SR-ICC-2014-17 pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder.\2\ The
proposed rule change was published for comment in the Federal Register
on November 3, 2014.\3\ The Commission received no comment letters
regarding the proposed change. For the reasons discussed below, the
Commission is granting approval of the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 34-73451 (Oct. 28,
2014), 79 FR 65280 (Nov. 3, 2014) (SR-ICC-2014-17).
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change
ICC is proposing this change to revise the ICC End-of-Day Price
Discovery Policies and Procedures to incorporate enhancements to its
price discovery
[[Page 73925]]
process. This revision does not require any changes to the ICC Clearing
Rules.
According to ICC, it utilizes a ``cross and lock'' algorithm as
part of its price discovery process. As described by ICC, under this
algorithm, bids and offers derived from Clearing Participant (``CP'')
submissions are matched by sorting them from highest to lowest and
lowest to highest levels, respectively. This sorting process pairs the
CP submitting the highest bid price with the CP submitting the lowest
offer price, the CP submitting the second highest bid price with the CP
submitting the second-lowest offer price, and so on. The algorithm then
identifies crossed and/or locked markets. Crossed markets are the
Clearing Participant pairs generated by the sorting and ranking process
for which the bid price of one Clearing Participant is above the offer
price of the matched Clearing Participant. The algorithm identifies
locked markets, where the bid and the offer are equal, in a similar
fashion. The mid-point of the first non-crossed, non-locked matched
market is, as stated by ICC, the final end-of-day level (with
additional steps taken to remove off-market submissions from
influencing the final level). According to ICC, this process captures
the market dynamics of trading; however, final pricing levels are
ultimately determined by a single bid and a single offer, which results
in the ability for one submission to influence the outcome.
ICC proposes enhancements to its methodology to improve the
consistency of prices and reduce the sensitivity of the final level to
a single Clearing Participant's submission. ICC states that under the
new ``cross and lock'' methodology, the average of the mid-points of
all non-crossed, non-locked matched markets that are less than or equal
to one bid-offer width is used as the final level (with additional
steps taken to remove off-market submissions from influencing the final
level). ICC states that, as a result, prices are less sensitive to
outlying submissions. ICC also proposes additional language in the ICC
End-of-Day Price Discovery Policies and Procedures to clarify existing
policies and practices, including, but not limited to, language to
clarify the existing pricing methodology's treatment of identical
crossed or locked matched market bids or offers.
III. Discussion and Commission Findings
Section 19(b)(2)(C) of the Act \4\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if the
Commission finds that such proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to such self-regulatory organization. Section 17A(b)(3)(F)
of the Act \5\ requires, among other things, that the rules of a
clearing agency are designed to promote the prompt and accurate
clearance and settlement of securities transactions and, to the extent
applicable, derivative agreements, contracts, and transactions, to
assure the safeguarding of securities and funds which are in the
custody or control of the clearing agency or for which it is
responsible and, in general, to protect investors and the public
interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2)(C).
\5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with Section 17A of the Act \6\ and the rules thereunder applicable to
ICC. The revised ICC End-of-Day Price Discovery Policies and Procedures
will reduce the sensitivity of the final price level to a single
Clearing Participant's submission, resulting in more consistent day-
over-day end-of-day levels. The proposed rule change is therefore
reasonably expected to provide a pricing methodology to more accurately
reflect the market level. As such, the Commission believes that the
changes will promote the prompt and accurate settlement of securities
and derivatives transactions, and therefore are consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to ICC, in particular, Section 17(A)(b)(3)(F).
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of Section 17A of the Act \7\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (File No. SR-ICC-2014-17) be, and
hereby is, approved.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2).
\9\ 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).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-29181 Filed 12-11-14; 8:45 am]
BILLING CODE 8011-01-P