80 FR 20041 - Self-Regulatory Organizations; OneChicago, LLC; Notice of Filing of Proposed Rule Change Relating to Ownership and Control Reports

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 71 (April 14, 2015)

[Federal Register Volume 80, Number 71 (Tuesday, April 14, 2015)]
[Notices]
[Pages 20041-20043]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-08451]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74679; File No. SR-OC-2015-01]


Self-Regulatory Organizations; OneChicago, LLC; Notice of Filing 
of Proposed Rule Change Relating to Ownership and Control Reports

April 8, 2015.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(the ``Act'') \1\, notice is hereby given that on March 31, 2015, 
OneChicago, LLC (``OneChicago,'' ``OCX,'' or the ``Exchange'') filed 
with the Securities and Exchange Commission (``SEC'' or ``Commission'') 
the proposed rule change 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 solicit comments on the 
proposed rule change from interested persons. OneChicago has also filed 
this rule change with the Commodity Futures Trading Commission 
(``CFTC''). OneChicago filed a written certification with the CFTC 
under Section 5c(c) of the Commodity Exchange Act (``CEA'') on March 
19, 2015.
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    \1\ 15 U.S.C. 78s(b)(7).
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I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    OneChicago is proposing to insert into its Rulebook new OCX Rule 
516 and concurrently issue Notice to Members (``NTM'') 2015-7. New OCX 
Rule 516 codifies the requirement that Clearing Members submit to the 
Exchange account information related to reportable positions in 
OneChicago Contracts. OneChicago currently requires position-based 
reporting, but has not previously codified this requirement in the OCX 
Rulebook.\2\
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    \2\ See OCX NTM 2010-12.
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    Additionally, OneChicago is concurrently issuing NTM 2015-7. The 
NTM informs market participants that OneChicago is adopting new OCX 
Rule 516. Additionally, the NTM explains to market participants that 
OCX will require Clearing Members to submit CFTC Form 102A and 102B 
data in the format required by the CFTC's Ownership and Control Reports 
(``OCR'') Final Rule.\3\
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    \3\ CFTC, Ownership and Control Reports, Forms 102/102S/40/40S 
and 71; Final Rule 78 FR 69178 (Nov. 18, 2013).
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    The text of the proposed rule change is attached as Exhibit 4 to 
the filing submitted by the Exchange but is not attached to the 
published notice of the filing.

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

    In its filing with the Commission, OneChicago 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
New OCX Rule 516
    OneChicago is proposing to amend the OCX Rulebook to insert new OCX 
Rule 516. OCX Rule 516 will require Clearing Members to submit to the 
Exchange account information related to reportable positions in 
OneChicago Contracts. OneChicago currently requires such reporting, but 
has not

[[Page 20042]]

previously codified this requirement in the OCX Rulebook. OneChicago 
believes that by codifying this requirement in the OCX Rulebook, market 
participants will have more certainty regarding their regulatory 
requirements. New OCX Rule 516 requires the submission of the account 
information in a form and manner prescribed by the Exchange. 
Accordingly, OCX is concurrently issuing NTM 2015-7, which requires the 
submission of the account information in the format required by the 
CFTC's OCR final rule.
Electronic Submission of Form 102A and Form 102B Data
    On November 18, 2013, the CFTC adopted new rules and related forms 
to enhance its identification of futures and swap market participants. 
The OCR Final Rule expanded upon the CFTC's pre-existing position and 
transaction reporting programs by requiring the electronic submission 
of trader identification and market participant data on certain forms.
    Previously, market participants made these reports to the CFTC via 
paper forms, now referred to as ``legacy'' forms. Designated Contract 
Markets (``DCMs'') like OneChicago also required the submission of 
these legacy forms. The reporting programs allowed DCMs to conduct 
their self-regulatory obligations effectively, as the forms contain 
account information relating to market participants with reportable 
positions. Currently, OneChicago requires Clearing Members to submit a 
legacy Form 102 when an account of that Clearing Member has a 
reportable position of two hundred contracts in any contract.
    OneChicago's NTM 2015-7 will require Clearing Members to make two 
changes to their reporting program. First, Clearing Members will be 
required to submit their reports electronically in the format required 
by the CFTC. Second, in addition to submitting Form 102A when a 
Clearing Member's customer has a reportable position, Clearing Members 
will be required to submit Form 102B when a customer exceeds the volume 
threshold of fifty contracts in any contract.
    The NTM then provides instructions for firms to submit their Form 
102A and 102B data electronically. For Form 102A, the NTM requires that 
Clearing Members submit the data when a customer has a two hundred 
contract position in any contract, which is currently the reportable 
threshold. The NTM requires the submission by 9:00 a.m. Central Time 
(``CT'') on the business day following the date on which the account 
becomes reportable. The implementation date for the electronic Form 
102A data will be December 30, 2015.\4\
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    \4\ On February 10, 2015, the CFTC issued a No-Action letter 
regarding the OCR Final Rule. The No-Action letter granted no-action 
relief from the requirement to report New Forms 102A and 102B until 
September 30, 2015. See CFTC Letter No. 15-03, dated February 10, 
2015. OneChicago is establishing a compliance date for Forms 102A 
and 102B that is 120 days after the OCR Final Rule effective date to 
allow market participants sufficient time to make necessary changes 
to their systems to support electronic transmission of the data.
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    For Form 102B, the NTM requires that Clearing Members submit the 
data when a customer has exceeded fifty contracts traded in any 
contract during a single trading day. The NTM requires the submission 
by 9:00 a.m. CT on the business day following the date on which the 
account becomes reportable. The implementation date for the electronic 
Form 102B data will also be December 30, 2015.
Amendments to OCX Rules 905 and 1005
    OCX Rules 905 and 1005 provide the template for the Form of 
Specifications Supplement for each OneChicago Contract. Specifically, 
Rule 905 provides the template for Single Stock Futures, whereas Rule 
1005 provides the template for Stock Index Futures. Both of these 
templates are being updated to allow for a reportable trading volume 
level to accommodate the new volume threshold reporting requirement.
2. Statutory Basis
    OneChicago believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Section 6(b)(5) \6\ and 6(b)(7) \7\ in particular in that 
it is designed:
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ 15 U.S.C. 78f(b)(7).
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     To prevent fraudulent and manipulative acts and practices,
     to promote just and equitable principles of trade,
     to foster cooperation and coordination with persons 
engaged in facilitating transactions in securities,
     to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and in general, to 
protect investors and the public interest.
    The Exchange believes that the proposed rule change will strengthen 
its ability to carry out its responsibilities as a self-regulatory 
organization. OneChicago must receive the information that Clearing 
Members provide to the CFTC under the new OCR Rule in order to carry 
out OneChicago's market surveillance program. Additionally, 
OneChicago's proposed addition of new OCX Rule 516 will further help 
the Exchange carry out its self-regulatory duties, as it will expressly 
codify the requirement that firms submit the relevant account data to 
the Exchange. The Form 102A data will allow the Exchange to continue to 
identify accounts that acquire reportable positions. Similarly, the 
Form 102B data will allow the Exchange to identify accounts that cross 
the volume threshold level intraday. OneChicago did not previously have 
access to this volume threshold account data, and Form 102B will now 
allow the Exchange to identify more market participants engaged in 
trading OneChicago products.

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

    OneChicago does not believe that the rule change and associated NTM 
will impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act, in that the rule change and 
associated NTM enhances OneChicago's market surveillance program. The 
Exchange believes that the proposed rule change and associated NTM are 
equitable and not unfairly discriminatory because they would apply 
equally to all Clearing Members.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    The rule amendment and NTM will become operative on April 6, 2015.
    At any time within 60 days of the date of effectiveness of the 
proposed rule change, the Commission, after consultation with the CFTC, 
may summarily abrogate the proposed rule change and require that the 
proposed rule change be refiled in accordance with the provisions of 
Section 19(b)(1) of the Act.\8\
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    \8\ 15 U.S.C. 78s(b)(1).
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 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.

[[Page 20043]]

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-OC-2015-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-OC-2015-01. 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-OC-2015-01, 
and should be submitted on or before May 5, 2015.
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    \9\ 17 CFR 200.30-3(a)(73).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Brent J. Fields,
Secretary.
[FR Doc. 2015-08451 Filed 4-13-15; 8:45 am]
BILLING CODE 8011-01-P