80_FR_18731 80 FR 18665 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Share Member-Designated Risk Settings in the Trading System With Clearing Members

80 FR 18665 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Share Member-Designated Risk Settings in the Trading System With Clearing Members

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 66 (April 7, 2015)

Page Range18665-18667
FR Document2015-07849

Federal Register, Volume 80 Issue 66 (Tuesday, April 7, 2015) 
[Federal Register Volume 80, Number 66 (Tuesday, April 7, 2015)]
[Notices]
[Pages 18665-18667]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07849]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74622; File No. SR-ISEGemini-2015-08]


Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Share Member-
Designated Risk Settings in the Trading System With Clearing Members


April 1, 2015. 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 March 30, 2015 ISE Gemini, LLC (the ``Exchange'' 
or ``ISE Gemini'') filed with the Securities and Exchange Commission 
the proposed rule change, as described in Items I, II, and III below, 
which items have been prepared by the self-regulatory organization. The 
Commission is publishing this notice to

[[Page 18666]]

solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    ISE Gemini proposes to amend Rule 706 to authorize the Exchange to 
share any Member-designated risk settings in the trading system with 
the Clearing Member that clears transactions on behalf of the Member. 
The text of the proposed rule change is available on the Exchange's Web 
site (http://www.ise.com), at the principal office of the Exchange, and 
at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
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 self-regulatory organization 
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
    The Exchange proposes to amend Rule 706 to authorize the Exchange 
to share any Member-designated risk settings in the trading system with 
the Clearing Member that clears transactions on behalf of the Member. 
Rule 706 states that ``[u]nless otherwise provided in the Rules, no one 
but a Member or a person associated with a Member shall effect any 
Exchange Transactions.'' \3\ The Exchange proposes to amend the current 
rule by adding the following sentence: ``The Exchange may share any 
Member-designated risk settings in the trading system with the Clearing 
Member that clears transactions on behalf of the Member.''
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    \3\ See Rule 706(a).
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    Each Member that transacts through a Clearing Member on the 
Exchange executes a Letter of Clearing Authorization, in the case of 
Electronic Access Members, or a Market Maker Letter of Guarantee, in 
the case of Primary Market Makers and Competitive Market Makers, 
wherein the Clearing Member ``accepts financial responsibility for all 
Exchange Transactions made by the'' Member on whose behalf the Clearing 
Member submits the letter of guarantee. The Exchange believes that 
because Clearing Members guarantee all transactions on behalf of a 
Member, and therefore, bear the risk associated with those 
transactions, it is appropriate for Clearing Members to have knowledge 
of what risk settings a Member may utilize within the trading system.
    The Exchange notes that while not all Members are Clearing Members, 
all Members require a Clearing Member's consent to clear transactions 
on their behalf in order to conduct business on the Exchange. As the 
Clearing Member ultimately bears all the risk for a trade they clear on 
any Member's behalf, the Exchange believes it is reasonable to provide 
Clearing Members with information relating to the risk settings used by 
each Member whose transactions they are clearing. To the extent that a 
Clearing Member might reasonably require a Member to provide access to 
its risk settings as a prerequisite to continue to clear trades on the 
Member's behalf, the Exchange's proposal to share those risk settings 
directly reduces the administrative burden on Members and ensures that 
Clearing Members are receiving information that is up-to-date and 
conforms to the settings active in the trading system.
    The Exchange further notes that any broker-dealer is free to become 
a Clearing Member of the Options Clearing Corporation (the ``OCC''), 
which would enable that Member to avoid sharing risk settings with any 
third party, if they so choose. For these reasons, the Exchange 
believes that the proposal is consistent with the Act as it provides 
Clearing Members with additional risk-related information that may aid 
them in complying with the Act, notably Rule 15c3-5 and, as noted, 
Members that do not wish to share such settings with a Clearing Member 
can do so by become clearing members of the OCC.
    The risk settings that would be shared pursuant to the proposed 
rule are currently codified in Rule 804. The risk settings are designed 
to mitigate the potential risks of multiple executions against a 
Member's trading interest that, in today's highly automated and 
electronic trading environment, can occur simultaneously across 
multiple series and multiple option classes. The proposed rule will 
allow the Exchange to share a Member's risk settings with the Clearing 
Member that guarantees the Member's transactions, and therefore has a 
financial interesting [sic] in understanding the risk tolerance of a 
Member.
    Because the Letter of Clearing Authorization and the Market Maker 
Letter of Guarantee codifies relationships between a Member and the 
Clearing Member, the Exchange is on notice of which Clearing Members 
have relationships with which Members. The proposed rule change would 
simply provide the Exchange with authority to directly provide Clearing 
Members with information that may otherwise be available to such 
Clearing Members by virtue of their relationship with the respective 
Member.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of Section 6(b) of the Act.\4\ In 
particular, the proposal is consistent with Section 6(b)(5) of the 
Act,\5\ because it is designed to promote just and equitable principles 
of trade, to remove impediments to and perfect the mechanisms of a free 
and open market and a national market system and, in general, to 
protect investors and the public interest.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change removes 
impediments to and perfects the mechanism of a free and open market by 
codifying that the Exchange can directly provide to Clearing Members 
that guarantee that Member's transactions on the Exchange the Member-
designated risk settings in the trading system, which are designed to 
mitigate the potential risk of multiple executions against a Member's 
trading interest that, in today's highly automated and electronic 
trading environment, can occur simultaneously across multiple series 
and multiple option classes. The Exchange believes that the proposed 
rule change is consistent with the protection of investors and the 
public interests because it will permit Clearing Members with a 
financial interest in a Member's risk settings to better monitor and 
manage the potential risks assumed by Members with whom the Clearing 
Member has entered into a letter of guarantee, thereby providing 
Clearing Members with greater control and flexibility over setting 
their own risk tolerance and exposure.

[[Page 18667]]

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposal is consistent with Section 
6(b)(8) of the Act \6\ in that it does not impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. The proposed rule change is not designed to 
address any aspect of competition, but would provide authority for the 
Exchange to directly share risk settings with Clearing Members 
regarding the Members with whom the Clearing Member has executed a 
letter of guarantee so the Clearing Member can better monitor and 
manage the potential risks assumed by the Members, thereby providing 
them with greater control and flexibility over setting their own risk 
tolerance and exposure. The proposed rule change does not pose an undue 
burden on non-Clearing Members because, unlike Clearing Members, non-
Clearing Members do not guarantee the execution of the Member 
transactions on the Exchange. The proposed rule change is structured to 
offer the same enhancement to all Clearing Members, regardless of size, 
and would not impose a competitive burden on any participant.
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    \6\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from members or other interested 
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange believes that the foregoing proposed rule change may 
take effect upon filing with the Commission pursuant to 
Section19(b)(3)(A) \7\ of the Act and Rule 19b-4(f)(6) thereunder \8\ 
because the foregoing proposed rule change does not (i) significantly 
affect the protection of investors or the public interest, (ii) impose 
any significant burden on competition, and (iii) become operative for 
30 days after its filing date, or such shorter time as the Commission 
may designate.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-ISEGemini 2015-08 on the subject line.

Paper Comments

     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-ISEGemini-2015-08. 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 (http://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 filing also will be available 
for inspection and copying at the principal offices of the Exchange. 
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-ISEGemini-
2015-08, and should be submitted on or before April 28, 2015.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Brent J. Fields,
Secretary.
[FR Doc. 2015-07849 Filed 4-6-15; 8:45 am]
BILLING CODE CODE 8011-01-P

Federal Register / Vol. 80, No. 66 / Tuesday, April 7, 2015 / Notices 18665 materially in 1947. Rule 17f–2 estimates that on an annual basis it custody of their own assets. Responses establishes safeguards for arrangements takes: (i) 0.5 hours of fund accounting will not be kept confidential. An agency in which a registered management personnel at a total cost of $99 to draft may not conduct or sponsor, and a investment company (‘‘fund’’) is director resolutions; 4 (ii) 0.5 hours of person is not required to respond to, a deemed to maintain custody of its own the fund’s board of directors at a total collection of information unless it assets, such as when the fund maintains cost of $2200 to adopt the resolution; 5 displays a currently valid control its assets in a facility that provides (iii) 244 hours for the fund’s accounting number. safekeeping but not custodial services.1 personnel at a total cost of $63,797 to Written comments are invited on: (a) The rule includes several recordkeeping prepare written notations of Whether the collection of information is or reporting requirements. The fund’s transactions; 6 and (iv) 7 hours for the necessary for the proper performance of directors must prepare a resolution fund’s accounting personnel at a total the functions of the Commission, designating not more than five fund cost of $1386 to assist the independent including whether the information has officers or responsible employees who public accountants when they perform practical utility; (b) the accuracy of the may have access to the fund’s assets. verifications of fund assets.7 Commission’s estimate of the burden of The designated access persons (two or Commission staff estimates that the collection of information; (c) ways to more of whom must act jointly when approximately 188 funds file Form N– enhance the quality, utility, and clarity handling fund assets) must prepare a 17f–2 each year.8 Thus, the total annual of the information collected; and (d) written notation providing certain hour burden for rule 17f–2 is estimated ways to minimize the burden of the information about each deposit or to be 47,376 hours.9 Based on the total collection of information on withdrawal of fund assets, and must costs per fund listed above, the total respondents, including through the use transmit the notation to another officer cost of rule 17f–2’s collection of of automated collection techniques or or director designated by the directors. information requirements is estimated other forms of information technology. An independent public accountant must to be approximately $12.7 million.10 Consideration will be given to verify the fund’s assets three times each The estimate of average burden hours comments and suggestions submitted in year, and two of those examinations is made solely for the purposes of the writing within 60 days of this must be unscheduled.2 Paperwork Reduction Act, and is not publication. derived from a comprehensive or even Please direct your written comments Rule 17f–2’s requirement that a representative survey or study of the to Pamela Dyson, Director/Chief directors designate access persons is costs of Commission rules and forms. Information Officer, Securities and intended to ensure that directors Complying with the collections of Exchange Commission, c/o Remi Pavlik- evaluate the trustworthiness of insiders information required by rule 17f–2 is Simon, 100 F Street NE., Washington, who handle fund assets. The mandatory for those funds that maintain DC 20549; or send an email to: PRA_ requirements that access persons act jointly in handling fund assets, prepare Mailbox@sec.gov. industry. The actual number of hours may vary a written notation of each transaction, significantly depending on individual fund assets. Dated: April 1, 2015. and transmit the notation to another 4 This estimate is based on the following Brent J. Fields, designated person are intended to calculation: 0.5 (burden hours per fund) × $198 Secretary. (senior accountant’s hourly rate) = $99. Unless reduce the risk of misappropriation of otherwise indicated, the hourly wage figures used [FR Doc. 2015–07852 Filed 4–6–15; 8:45 am] fund assets by access persons, and to herein are from the Securities Industry and BILLING CODE CODE 8011–01–P ensure that adequate records are Financial Markets Association’s Management & prepared, reviewed by a responsible Professional Earnings in the Securities Industry 2013, modified by Commission staff to account for third person, and available for an 1800-hour work-year and multiplied by 5.35 to SECURITIES AND EXCHANGE examination by the Commission. The account for bonuses, firm size, employee benefits COMMISSION requirement that auditors verify fund and overhead. 5 The estimate for the cost of board time as a [Release No. 34–74622; File No. SR– assets without notice twice each year is ISEGemini–2015–08] whole is derived from estimates made by the staff intended to provide an additional regarding typical board size and compensation that deterrent to the misappropriation of is based on information received from fund Self-Regulatory Organizations; ISE fund assets and to detect any representatives and publicly available sources. Gemini, LLC; Notice of Filing and irregularities. 6 Respondents estimated that each fund makes Immediate Effectiveness of Proposed 974 responses on an annual basis and spends a total The Commission staff estimates that of 0.25 hours per response. The fund personnel Rule Change To Share Member- each fund makes 974 responses and involved are Accounts Payable Manager ($186 Designated Risk Settings in the spends an average of 252 hours annually hourly rate), Operations Manager ($334 hourly rate) Trading System With Clearing in complying with the rule’s and Accounting Manager ($265 hourly rate). The Members average hourly rate of these personnel is $262. The requirements.3 Commission staff estimated cost of preparing notations is based on the following calculation: 974 × 0.25 × $262 = APRIL 1, 2015.Pursuant to Section 1 The rule generally requires all assets to be $63,797. 19(b)(1) of the Securities Exchange Act deposited in the safekeeping of a ‘‘bank or other 7 This estimate is based on the following of 1934 (the ‘‘Act’’),1 and Rule 19b–4 company whose functions and physical facilities calculation: 7 × $198 (senior accountant’s hourly are supervised by Federal or State authority.’’ The rate) = $1386. thereunder,2 notice is hereby given that fund’s securities must be physically segregated at 8 On average, each year approximately 188 funds on March 30, 2015 ISE Gemini, LLC (the all times from the securities of any other person. filed Form N–17f–2 with the Commission during ‘‘Exchange’’ or ‘‘ISE Gemini’’) filed with 2 The accountant must transmit to the calendar years 2011–2013. the Securities and Exchange Commission promptly after each examination a 9 This estimate is based on the following mstockstill on DSK4VPTVN1PROD with NOTICES certificate describing the examination on Form N– calculation: 188 (funds) × 252 (total annual hourly Commission the proposed rule change, 17f–2. The third (scheduled) examination may burden per fund) = 47,376 hours for rule. The as described in Items I, II, and III below, coincide with the annual verification required for annual burden for rule 17f–2 does not include time which items have been prepared by the every fund by section 30(g) of the Act (15 U.S.C. spent preparing Form N–17f–2. The burden for self-regulatory organization. The 80a–29(g)). Form N–17f–2 is included in a separate collection 3 The 974 responses are: 1 (one) response to draft of information. Commission is publishing this notice to and adopt the resolution and 973 notations. 10 This estimate is based on the following Estimates of the number of hours are based on calculation: $67,482 (total annual cost per fund) × 1 15 U.S.C. 78s(b)(1). conversations with individuals in the fund 188 funds = $12,686,616. 2 17 CFR 240.19b–4. VerDate Sep<11>2014 17:46 Apr 06, 2015 Jkt 235001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\07APN1.SGM 07APN1

18666 Federal Register / Vol. 80, No. 66 / Tuesday, April 7, 2015 / Notices solicit comments on the proposed rule Transactions made by the’’ Member on understanding the risk tolerance of a change from interested persons. whose behalf the Clearing Member Member. submits the letter of guarantee. The Because the Letter of Clearing I. Self-Regulatory Organization’s Exchange believes that because Clearing Authorization and the Market Maker Statement of the Terms of the Substance Members guarantee all transactions on Letter of Guarantee codifies of the Proposed Rule Change behalf of a Member, and therefore, bear relationships between a Member and the ISE Gemini proposes to amend Rule the risk associated with those 706 to authorize the Exchange to share Clearing Member, the Exchange is on transactions, it is appropriate for any Member-designated risk settings in notice of which Clearing Members have Clearing Members to have knowledge of the trading system with the Clearing relationships with which Members. The what risk settings a Member may utilize Member that clears transactions on within the trading system. proposed rule change would simply behalf of the Member. The text of the provide the Exchange with authority to The Exchange notes that while not all proposed rule change is available on the directly provide Clearing Members with Members are Clearing Members, all Exchange’s Web site (http:// Members require a Clearing Member’s information that may otherwise be www.ise.com), at the principal office of consent to clear transactions on their available to such Clearing Members by the Exchange, and at the Commission’s behalf in order to conduct business on virtue of their relationship with the Public Reference Room. the Exchange. As the Clearing Member respective Member. II. Self-Regulatory Organization’s ultimately bears all the risk for a trade 2. Statutory Basis Statement of the Purpose of, and they clear on any Member’s behalf, the Statutory Basis for, the Proposed Rule Exchange believes it is reasonable to The Exchange believes that the Change provide Clearing Members with proposed rule change is consistent with In its filing with the Commission, the information relating to the risk settings the requirements of the Act and the self-regulatory organization included used by each Member whose rules and regulations thereunder that statements concerning the purpose of, transactions they are clearing. To the are applicable to a national securities and basis for, the proposed rule change extent that a Clearing Member might exchange, and, in particular, with the and discussed any comments it received reasonably require a Member to provide requirements of Section 6(b) of the Act.4 on the proposed rule change. The text access to its risk settings as a In particular, the proposal is consistent of these statements may be examined at prerequisite to continue to clear trades with Section 6(b)(5) of the Act,5 because the places specified in Item IV below. on the Member’s behalf, the Exchange’s it is designed to promote just and The self-regulatory organization has proposal to share those risk settings equitable principles of trade, to remove prepared summaries, set forth in directly reduces the administrative impediments to and perfect the sections A, B and C below, of the most burden on Members and ensures that mechanisms of a free and open market significant aspects of such statements. Clearing Members are receiving and a national market system and, in information that is up-to-date and general, to protect investors and the A. Self-Regulatory Organization’s conforms to the settings active in the public interest. Statement of the Purpose of, and trading system. Statutory Basis for, the Proposed Rule The Exchange believes that the The Exchange further notes that any Change proposed rule change removes broker-dealer is free to become a impediments to and perfects the 1. Purpose Clearing Member of the Options Clearing Corporation (the ‘‘OCC’’), mechanism of a free and open market by The Exchange proposes to amend codifying that the Exchange can directly Rule 706 to authorize the Exchange to which would enable that Member to avoid sharing risk settings with any provide to Clearing Members that share any Member-designated risk guarantee that Member’s transactions on settings in the trading system with the third party, if they so choose. For these reasons, the Exchange believes that the the Exchange the Member-designated Clearing Member that clears risk settings in the trading system, transactions on behalf of the Member. proposal is consistent with the Act as it provides Clearing Members with which are designed to mitigate the Rule 706 states that ‘‘[u]nless otherwise potential risk of multiple executions provided in the Rules, no one but a additional risk-related information that may aid them in complying with the against a Member’s trading interest that, Member or a person associated with a in today’s highly automated and Member shall effect any Exchange Act, notably Rule 15c3–5 and, as noted, Members that do not wish to share such electronic trading environment, can Transactions.’’ 3 The Exchange proposes occur simultaneously across multiple to amend the current rule by adding the settings with a Clearing Member can do so by become clearing members of the series and multiple option classes. The following sentence: ‘‘The Exchange may OCC. Exchange believes that the proposed share any Member-designated risk The risk settings that would be shared rule change is consistent with the settings in the trading system with the Clearing Member that clears pursuant to the proposed rule are protection of investors and the public transactions on behalf of the Member.’’ currently codified in Rule 804. The risk interests because it will permit Clearing Each Member that transacts through a settings are designed to mitigate the Members with a financial interest in a Clearing Member on the Exchange potential risks of multiple executions Member’s risk settings to better monitor executes a Letter of Clearing against a Member’s trading interest that, and manage the potential risks assumed Authorization, in the case of Electronic in today’s highly automated and by Members with whom the Clearing Member has entered into a letter of mstockstill on DSK4VPTVN1PROD with NOTICES Access Members, or a Market Maker electronic trading environment, can Letter of Guarantee, in the case of occur simultaneously across multiple guarantee, thereby providing Clearing Primary Market Makers and Competitive series and multiple option classes. The Members with greater control and Market Makers, wherein the Clearing proposed rule will allow the Exchange flexibility over setting their own risk Member ‘‘accepts financial to share a Member’s risk settings with tolerance and exposure. responsibility for all Exchange the Clearing Member that guarantees the Member’s transactions, and therefore 4 15 U.S.C. 78f(b). 3 See Rule 706(a). has a financial interesting [sic] in 5 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 17:46 Apr 06, 2015 Jkt 235001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\07APN1.SGM 07APN1

Federal Register / Vol. 80, No. 66 / Tuesday, April 7, 2015 / Notices 18667 B. Self-Regulatory Organization’s it appears to the Commission that such ISEGemini–2015–08, and should be Statement on Burden on Competition action is: (i) Necessary or appropriate in submitted on or before April 28, 2015. The Exchange believes the proposal is the public interest; (ii) for the protection For the Commission, by the Division of consistent with Section 6(b)(8) of the of investors; or (iii) otherwise in Trading and Markets, pursuant to delegated Act 6 in that it does not impose any furtherance of the purposes of the Act. authority.9 burden on competition that is not If the Commission takes such action, the Brent J. Fields, necessary or appropriate in furtherance Commission shall institute proceedings Secretary. of the purposes of the Act. The to determine whether the proposed rule [FR Doc. 2015–07849 Filed 4–6–15; 8:45 am] proposed rule change is not designed to should be approved or disapproved. BILLING CODE CODE 8011–01–P address any aspect of competition, but IV. Solicitation of Comments would provide authority for the Interested persons are invited to Exchange to directly share risk settings SECURITIES AND EXCHANGE submit written data, views, and with Clearing Members regarding the COMMISSION arguments concerning the foregoing, Members with whom the Clearing including whether the proposed rule [Release No. 34–74627; File No. SR–Phlx– Member has executed a letter of change is consistent with the Act. 2015–30] guarantee so the Clearing Member can Comments may be submitted by any of better monitor and manage the potential Self-Regulatory Organizations; the following methods: risks assumed by the Members, thereby NASDAQ OMX PHLX LLC; Notice of providing them with greater control and Electronic Comments Filing and Immediate Effectiveness of flexibility over setting their own risk • Use the Commission’s Internet Proposed Rule Change To Amend tolerance and exposure. The proposed comment form (http://www.sec.gov/ Section (a)(iv) of Rule 703, Financial rule change does not pose an undue rules/sro.shtml); or Responsibility and Reporting burden on non-Clearing Members • Send an email to rule-comments@ because, unlike Clearing Members, non- sec.gov. Please include File Number SR– April 1, 2015. Clearing Members do not guarantee the ISEGemini 2015–08 on the subject line. Pursuant to Section 19(b)(1) of the execution of the Member transactions Securities Exchange Act of 1934 on the Exchange. The proposed rule Paper Comments (‘‘Act’’),1 and Rule 19b–4 thereunder,2 change is structured to offer the same • Send paper comments in triplicate notice is hereby given that on March 23, enhancement to all Clearing Members, to Secretary, Securities and Exchange 2015, NASDAQ OMX PHLX LLC regardless of size, and would not Commission, 100 F Street NE., (‘‘Phlx’’ or ‘‘Exchange’’) filed with the impose a competitive burden on any Washington, DC 20549–1090. Securities and Exchange Commission participant. All submissions should refer to File (‘‘SEC’’ or ‘‘Commission’’) the proposed C. Self-Regulatory Organization’s Number SR–ISEGemini–2015–08. This rule change as described in Items I, II, Statement on Comments on the file number should be included on the and III, below, which Items have been Proposed Rule Change Received From subject line if email is used. To help the substantially prepared by the Exchange. Members, Participants, or Others Commission process and review your The Commission is publishing this comments more efficiently, please use notice to solicit comments on the The Exchange has not solicited, and only one method. The Commission will proposed rule change from interested does not intend to solicit, comments on post all comments on the Commission’s persons. this proposed rule change. The Internet Web site (http://www.sec.gov/ Exchange has not received any I. Self-Regulatory Organization’s rules/sro.shtml). Copies of the unsolicited written comments from Statement of the Terms of Substance of submission, all subsequent members or other interested parties. the Proposed Rule Change amendments, all written statements III. Date of Effectiveness of the with respect to the proposed rule The Exchange proposes to amend Proposed Rule Change and Timing for change that are filed with the section (a)(iv) of Rule 703, Financial Commission Action Commission, and all written Responsibility and Reporting, as communications relating to the described below.3 The Exchange believes that the proposed rule change between the The text of the proposed rule change foregoing proposed rule change may Commission and any person, other than is below. Proposed new language is in take effect upon filing with the those that may be withheld from the italics; proposed deletions are in Commission pursuant to public in accordance with the brackets. Section19(b)(3)(A) 7 of the Act and Rule 19b–4(f)(6) thereunder 8 because the provisions of 5 U.S.C. 552, will be * * * * * foregoing proposed rule change does not available for Web site viewing and printing in the Commission’s Public Rule 703. Financial Responsibility and (i) significantly affect the protection of Reporting investors or the public interest, (ii) Reference Room, 100 F Street NE., Washington, DC 20549, on official (a) Financial Responsibility Standards.— impose any significant burden on Each member organization effecting competition, and (iii) become operative business days between the hours of securities transactions shall comply with for 30 days after its filing date, or such 10:00 a.m. and 3:00 p.m. Copies of such the capital requirements set forth below: shorter time as the Commission may filing also will be available for (i) each member organization subject to SEC designate. inspection and copying at the principal mstockstill on DSK4VPTVN1PROD with NOTICES At any time within 60 days of the offices of the Exchange. All comments 9 17 CFR 200.30–3(a)(12). filing of the proposed rule change, the received will be posted without change; 1 See 15 U.S.C. 78s(b)(1). Commission summarily may the Commission does not edit personal 2 See 17 CFR 240.19b–4. temporarily suspend such rule change if identifying information from 3 A Registered Options Trader or ROT is a regular submissions. You should submit only member or a foreign currency options participant of the Exchange located on the trading floor who has 6 15 U.S.C. 78f(b)(8). information that you wish to make received permission from the Exchange to trade in 7 15 U.S.C. 78s(b)(3)(A). available publicly. All submissions options for his own account. See Exchange Rule 8 17 CFR 240.19b-4(f)(6). should refer to File Number SR– 1014(b)(i). VerDate Sep<11>2014 17:46 Apr 06, 2015 Jkt 235001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 E:\FR\FM\07APN1.SGM 07APN1


Document Created: 2018-02-21 10:05:36
Document Modified: 2018-02-21 10:05:36
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 18665 
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