80 FR 10171 - Sunshine Act Meeting

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 37 (February 25, 2015)

Page Range		10171-10171
FR Document		2015-03947

Federal Register, Volume 80 Issue 37 (Wednesday, February 25, 2015)

[Federal Register Volume 80, Number 37 (Wednesday, February 25, 2015)]
[Notices]
[Page 10171]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03947]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the 
Government in the Sunshine Act, Public Law 94-409, that the Securities 
and Exchange Commission will hold a Closed Meeting on Thursday, 
February 26, 2015 at 2:00 p.m.
    Commissioners, Counsel to the Commissioners, the Secretary to the 
Commission, and recording secretaries will attend the Closed Meeting. 
Certain staff members who have an interest in the matters also may be 
present.
    The General Counsel of the Commission, or her designee, has 
certified that, in her opinion, one or more of the exemptions set forth 
in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 
200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the 
scheduled matter at the Closed Meeting.
    Commissioner Stein, as duty officer, voted to consider the items 
listed for the Closed Meeting in closed session, and determined that no 
earlier notice thereof was possible.
    The subject matter of the Closed Meeting will be:
    Institution and settlement of injunctive actions;
    Institution and settlement of administrative proceedings; and
    Other matters relating to enforcement proceedings.
    At times, changes in Commission priorities require alterations in 
the scheduling of meeting items.
    For further information and to ascertain what, if any, matters have 
been added, deleted or postponed, please contact the Office of the 
Secretary at (202) 551-5400.

    Dated: February 20, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015-03947 Filed 2-23-15; 11:15 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 10171

Amendment to the Plan (File No. 4–631) SECURITIES AND EXCHANGE Background
be, and it hereby is, approved. COMMISSION According to OCC, under OCC’s By-
Brent J. Fields, Laws, the novation of confirmed trades
Secretary.
[Release No. 34–74302; File No. SR–OCC– (i.e., transactions in options, futures, or
2014–23] other ‘‘cleared contracts’’ effected
[FR Doc. 2015–03875 Filed 2–24–15; 8:45 am]
through an exchange and submitted to
BILLING CODE 8011–01–P Self-Regulatory Organizations; the OCC for clearing) occurs at the
Options Clearing Corporation; Order ‘‘commencement time’’ for such
Approving Proposed Rule Change To transactions.6 The ‘‘commencement
SECURITIES AND EXCHANGE Clarify That OCC Would not Treat a time’’ for most confirmed trades is when
COMMISSION Futures Transaction That Is an daily position reports are made
Exchange-for-Physical or Block Trade available to clearing members.7
Sunshine Act Meeting as a Non-Competitively Executed However, transactions in certain cleared
Trade if the Exchange on Which Such products and certain types of
Notice is hereby given, pursuant to Trade Is Executed Has Provided OCC transactions, including non-
the provisions of the Government in the With Representations That it Has competitively executed EFPs and Block
Sunshine Act, Public Law 94–409, that Policies or Procedures Requiring That Trades, have delayed commencement
the Securities and Exchange Such Trades Be Executed at times that are tailored to address risks
Commission will hold a Closed Meeting Reasonable Prices and That Such specific to such products or
on Thursday, February 26, 2015 at 2:00 Price Is Validated by the Exchange transactions,8 including, but not limited
p.m. to, those risks presented by off-market
February 19, 2015.
Commissioners, Counsel to the transactions.
Commissioners, the Secretary to the On December 19, 2014, the Options When OCC began clearing EFPs and
Commission, and recording secretaries Clearing Corporation (‘‘OCC’’) filed with Block Trades, it established that the
will attend the Closed Meeting. Certain the Securities and Exchange commencement time for such
Commission (‘‘Commission’’) the transactions is expressly conditioned
staff members who have an interest in
proposed rule change File No. SR–OCC– upon the receipt by OCC of variation
the matters also may be present.
2014–23 pursuant to Section 19(b)(1) of payments due from purchasing and
The General Counsel of the the Securities Exchange Act of 1934 selling clearing members because EFPs
Commission, or her designee, has (‘‘Act’’) 1 and Rule 19b–4 thereunder.2 and Block Trades could be executed
certified that, in her opinion, one or The proposed rule change was away from the market and be executed
more of the exemptions set forth in 5 published for comment in the Federal at other than market prices. These
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) Register on January 6, 2015.3 The factors were viewed as creating
and 17 CFR 200.402(a)(3), (5), (7), 9(ii) Commission did not receive any heightened exposure to OCC if a
and (10), permit consideration of the comments on the proposed rule change. clearing member defaults on a trade
scheduled matter at the Closed Meeting. This order approves the proposed rule executed at an off-market price and, as
Commissioner Stein, as duty officer, change. a result, Article XII, Section 7 of OCC’s
voted to consider the items listed for the I. Description By-Laws establishes that the
Closed Meeting in closed session, and commencement time for an EFP or
determined that no earlier notice thereof OCC is modifying its By-Laws to add Block Trade is the time of the first
was possible. an interpretation and policy to Section variation payment after the trade is
7 of Article XII of its By-Laws to clarify reported to OCC (typically 9:00 a.m.
The subject matter of the Closed that OCC will not treat a futures Central Time the following business
Meeting will be: transaction that is an exchange-for- day).9 OCC delays its novation of these
Institution and settlement of physical (‘‘EFP’’) 4 or block trade in non-competitively executed futures
injunctive actions; futures (‘‘Block Trade’’) 5 as a non- trades because OCC is bound to pay the
Institution and settlement of competitively executed trade, and first variation settlement amount to the
therefore subject to delayed novation, if counterparty once novation has
administrative proceedings; and
the exchange on which the EFP or Block occurred, and if the agreed-upon price
Other matters relating to enforcement Trade is executed has provided OCC at which the trade is entered differs
proceedings. with representations that it has rules, from the competitive market price, there
At times, changes in Commission policies or procedures requiring that is an increased likelihood that OCC may
priorities require alterations in the such trades be executed at reasonable
scheduling of meeting items. prices and that such prices are validated 6 Cleared Contracts and Commencement Time are

by the exchange. defined terms set forth in Article 1, Section 1 of
For further information and to OCC’s By-Laws.
ascertain what, if any, matters have been 1 15
7 See OCC’s By-Laws Article VI, Section 5.
U.S.C. 78s(b)(1). According to OCC, in a practical sense, however,
added, deleted or postponed, please 2 17 CFR 240.19b–4. most trades are novated upon proper submission to
contact the Office of the Secretary at 3 Securities Exchange Act Release No. OCC for clearing since OCC’s By-Laws, with limited
(202) 551–5400. 73961(December 30, 2014), 80 FR 568 (January 6, exception, do not permit OCC to reject any
asabaliauskas on DSK5VPTVN1PROD with NOTICES

2015) (SR–OCC–2014–23). confirmed trade due to the failure of the purchasing
Dated: February 20, 2015. 4 According to OCC, an EFP is a transaction clearing member to pay any amount due to OCC at
Brent J. Fields, between two parties in which a futures contract on or before the settlement time. See also Securities
a commodity or security is exchanged for the actual Exchange Act Release No. 65990 (December 16,
Secretary. physical good. 2011), 76 FR 79731 (December 22, 2011) (SR–OCC–
[FR Doc. 2015–03947 Filed 2–23–15; 11:15 am] 5 According to OCC, a block trade is a trade 2011–17).
8 Id.
BILLING CODE 8011–01–P involving a large number of shares being traded at
an arranged price between parties, outside of the 9 See Securities Exchange Act Release No. 44727

open markets, in order to lessen the impact of such (August 20, 2001), 66 FR 45351 (August 28, 2001)
a large trade being made public. (SR–OCC–2001–07).

VerDate Sep<11>2014 18:05 Feb 24, 2015 Jkt 235001 PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 E:\FR\FM\25FEN1.SGM 25FEN1

Document Created: 2015-12-18 13:08:44
Document Modified: 2015-12-18 13:08:44

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 10171