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, Issue 71 (April 14, 2015)
| Page Range | 20041-20043 | |
| FR Document | 2015-08451 |
[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] ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(7). --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \2\ See OCX NTM 2010-12. --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \3\ CFTC, Ownership and Control Reports, Forms 102/102S/40/40S and 71; Final Rule 78 FR 69178 (Nov. 18, 2013). --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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: --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ 15 U.S.C. 78f(b)(7). ---------------------------------------------------------------------------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\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(1). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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
![Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 20041
(2) The Exchange has appropriate (8) All futures contracts in which the I. Self-Regulatory Organization’s
rules to facilitate transactions in the Fund may invest will be listed on U.S. Description of the Proposed Rule
Shares during all trading sessions. that are members of the ISG. Change
(3) FINRA, on behalf of the Exchange, This approval order is based on all of OneChicago is proposing to insert into
will communicate as needed regarding the Exchange’s representations, its Rulebook new OCX Rule 516 and
trading in the Shares, exchange-listed including those set forth above and in concurrently issue Notice to Members
equity securities, futures contracts, and the Notice. (‘‘NTM’’) 2015–7. New OCX Rule 516
exchange-traded options contracts with codifies the requirement that Clearing
other markets and other entities that are For the foregoing reasons, the
Commission finds that the proposed Members submit to the Exchange
members of ISG, and FINRA, on behalf account information related to
of the Exchange, may obtain trading rule change is consistent with Section
6(b)(5) of the Act 31 and the rules and reportable positions in OneChicago
information regarding trading in the Contracts. OneChicago currently
Shares, exchange-listed equity regulations thereunder applicable to a
national securities exchange. requires position-based reporting, but
securities, futures contacts and has not previously codified this
exchange-traded options contracts from IV. Conclusion requirement in the OCX Rulebook.2
such markets and other entities. In Additionally, OneChicago is
addition, the Exchange may obtain It is therefore ordered, pursuant to concurrently issuing NTM 2015–7. The
information regarding trading in the Section 19(b)(2) of the Act,32 that the NTM informs market participants that
Shares, exchange-listed equity proposed rule change (SR–NYSEArca– OneChicago is adopting new OCX Rule
securities, futures contacts and 2015–05) be, and it hereby is, approved. 516. Additionally, the NTM explains to
exchange-traded options contracts from For the Commission, by the Division of market participants that OCX will
markets and other entities that are Trading and Markets, pursuant to delegated require Clearing Members to submit
members of ISG or with which the authority.33 CFTC Form 102A and 102B data in the
Exchange has in place a comprehensive format required by the CFTC’s
Brent J. Fields,
surveillance sharing agreement. Ownership and Control Reports
(4) Prior to the commencement of Secretary.
(‘‘OCR’’) Final Rule.3
trading, the Exchange will inform its [FR Doc. 2015–08447 Filed 4–13–15; 8:45 am] The text of the proposed rule change
Equity Trading Permit Holders in an BILLING CODE 8011–01–P is attached as Exhibit 4 to the filing
Information Bulletin of the special submitted by the Exchange but is not
characteristics and risks associated with attached to the published notice of the
trading the Shares. Specifically, the SECURITIES AND EXCHANGE filing.
Information Bulletin will discuss the COMMISSION
following: (a) the procedures for II. Self-Regulatory Organization’s
purchases and redemptions of Shares in Statement of the Purpose of, and
[Release No. 34–74679; File No. SR–OC–
creation units (and that Shares are not Statutory Basis for, the Proposed Rule
2015–01]
individually redeemable); (b) NYSE Change
Arca Equities Rule 9.2(a), which Self-Regulatory Organizations; In its filing with the Commission,
imposes a duty of due diligence on its OneChicago, LLC; Notice of Filing of OneChicago included statements
Equity Trading Permit Holders to learn Proposed Rule Change Relating to concerning the purpose of and basis for
the essential facts relating to every Ownership and Control Reports the proposed rule change and discussed
customer prior to trading the Shares; (c) any comments it received on the
the risks involved in trading the Shares April 8, 2015. proposed rule change. The text of these
during the Opening and Late Trading Pursuant to Section 19(b)(7) of the statements may be examined at the
Sessions when an updated IIV or Index Securities Exchange Act of 1934 (the places specified in Item IV below. The
value will not be calculated or publicly ‘‘Act’’) 1, notice is hereby given that on self-regulatory organization has
disseminated; (d) how information March 31, 2015, OneChicago, LLC prepared summaries, set forth in
regarding the IIV and Index Value is (‘‘OneChicago,’’ ‘‘OCX,’’ or the sections A, B, and C below, of the most
disseminated; (e) the requirement that ‘‘Exchange’’) filed with the Securities significant aspects of such statements.
Equity Trading Permit Holders deliver a and Exchange Commission (‘‘SEC’’ or A. Self-Regulatory Organization’s
prospectus to investors purchasing ‘‘Commission’’) the proposed rule Statement of the Purpose of, and
newly issued Shares prior to or change described in Items I, II, and III Statutory Basis for, the Proposed Rule
concurrently with the confirmation of a below, which Items have been prepared Change
transaction; and (f) trading information. by the self-regulatory organization. The
(5) For initial and continued listing, Commission is publishing this notice to 1. Purpose
the Fund will be in compliance with solicit comments on the proposed rule New OCX Rule 516
Rule 10A–3 under the Act,30 as change from interested persons.
provided by NYSE Arca Equities Rule OneChicago is proposing to amend
OneChicago has also filed this rule the OCX Rulebook to insert new OCX
5.3. change with the Commodity Futures
(6) The Fund may hold up to an Rule 516. OCX Rule 516 will require
Trading Commission (‘‘CFTC’’). Clearing Members to submit to the
aggregate amount of 15% of its net
asabaliauskas on DSK5VPTVN1PROD with NOTICES
OneChicago filed a written certification Exchange account information related to
assets in illiquid assets (calculated at with the CFTC under Section 5c(c) of
the time of investment). reportable positions in OneChicago
the Commodity Exchange Act (‘‘CEA’’) Contracts. OneChicago currently
(7) A minimum of 100,000 Shares for on March 19, 2015.
the Fund will be outstanding at the requires such reporting, but has not
commencement of trading on the 31 15 U.S.C. 78f(b)(5). 2 SeeOCX NTM 2010–12.
Exchange. 32 15 U.S.C. 78s(b)(2). 3 CFTC, Ownership and Control Reports, Forms
33 17 CFR 200.30–3(a)(12).
102/102S/40/40S and 71; Final Rule 78 FR 69178
30 17 CFR 240.10A–3. 1 15 U.S.C. 78s(b)(7). (Nov. 18, 2013).
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![Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 20043
Comments may be submitted by any of SECURITIES AND EXCHANGE SECURITIES AND EXCHANGE
the following methods: COMMISSION COMMISSION
Electronic Comments [Release No. 34–74604; File No. SR– [Release No. 34–74682; File No. SR–
NYSEArca–2015–20] NYSEMKT–2015–22]
• Use the Commission’s Internet
comment form (http://www.sec.gov/ Self-Regulatory Organizations; NYSE Self-Regulatory Organizations; NYSE
rules/sro.shtml); or Arca, Inc.; Notice of Filing and MKT, LLC; Notice of Filing of Proposed
Rule Change Amending Rule 13—
• Send an email to rule-comments@ Immediate Effectiveness of Proposed
Equities and Related Rules Governing
sec.gov. Please include File Number SR– Rule Change Amending Its Schedule of
Fees and Charges for Exchange Order Types and Modifiers
OC–2015–01 on the subject line.
Services To Specify That Affiliated April 8, 2015.
Paper Comments Exchange ETP Holders May Request Pursuant to Section 19(b)(1) 1 of the
That the Exchange Aggregate Its Securities Exchange Act of 1934
• Send paper comments in triplicate Eligible Activity With Activity of the
to Brent J. Fields, Secretary, Securities (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
ETP Holder’s Affiliates for Purposes of notice is hereby given that on March 24,
and Exchange Commission, 100 F Street Charges or Credits Based on Volume 2015, NYSE MKT LLC (the ‘‘Exchange’’
NE., Washington, DC 20549–1090.
Correction or ‘‘NYSE MKT’’) filed with the
All submissions should refer to File Securities and Exchange Commission
Number SR–OC–2015–01. This file In Notice document 2015–07619 (‘‘Commission’’) the proposed rule
number should be included on the beginning on page 18270 in the issue of change as described in Items I, II, and
subject line if email is used. To help the Friday, April 3, 2015, make the III below, which Items have been
Commission process and review your following correction: prepared by the self-regulatory
comments more efficiently, please use On page 18270, in the third column, organization. The Commission is
only one method. The Commission will in the second paragraph from the publishing this notice to solicit
post all comments on the Commission’s bottom, the subject heading beginning comments on the proposed rule change
Internet Web site (http://www.sec.gov/ ‘‘Self-Regulatory Organizations’’ should from interested persons.
rules/sro.shtml). Copies of the read as follows:
I. Self-Regulatory Organization’s
submission, all subsequent ‘‘Self-Regulatory Organizations; NYSE Statement of the Terms of Substance of
amendments, all written statements Arca, Inc.; Notice of Filing and the Proposed Rule Change
with respect to the proposed rule Immediate Effectiveness of Proposed
Rule Change Amending Its Schedule The Exchange proposes to amend
change that are filed with the Rule 13—Equities and related rules
Commission, and all written of Fees and Charges for Exchange
Services to Specify that Affiliated governing order types and modifiers.
communications relating to the The text of the proposed rule change is
Exchange ETP Holders May Request
proposed rule change between the available on the Exchange’s Web site at
that the Exchange Aggregate Its
Commission and any person, other than Eligible Activity with Activity of the www.nyse.com, at the principal office of
those that may be withheld from the ETP Holder’s Affiliates for Purposes the Exchange, and at the Commission’s
public in accordance with the of Charges or Credits Based on Public Reference Room.
provisions of 5 U.S.C. 552, will be Volume’’ II. Self-Regulatory Organization’s
available for Web site viewing and Statement of the Purpose of, and
[FR Doc. C1–2015–07619 Filed 4–13–15; 8:45 am]
printing in the Commission’s Public Statutory Basis for, the Proposed Rule
BILLING CODE 1505–01–D
Reference Room, 100 F Street NE., Change
Washington, DC 20549, on official
business days between the hours of In its filing with the Commission, the
SECURITIES AND EXCHANGE self-regulatory organization included
10:00 a.m. and 3:00 p.m. Copies of such COMMISSION statements concerning the purpose of,
filing also will be available for
[Release No. 34–74628; File No. SR–Phlx– and basis for, the proposed rule change
inspection and copying at the principal
2015–32] and discussed any comments it received
offices of the Exchange. All comments on the proposed rule change. The text
received will be posted without change; Self-Regulatory Organizations; of those statements may be examined at
the Commission does not edit personal NASDAQ OMX PHLX LLC; Notice of the places specified in Item IV below.
identifying information from Filing and Immediate Effectiveness of The Exchange has prepared summaries,
submissions. You should submit only Proposed Rule Change To Amend Rule set forth in sections A, B, and C below,
information that you wish to make 3301(h) of the most significant parts of such
available publicly. All submissions statements.
should refer to File Number SR–OC– April 1, 2015.
2015–01, and should be submitted on or A. Self-Regulatory Organization’s
Correction Statement of the Purpose of, and the
before May 5, 2015.
In notice document 2015–07851, Statutory Basis for, the Proposed Rule
For the Commission, by the Division of appearing on pages 18662—18664 in the Change
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Trading and Markets, pursuant to delegated issue of Tuesday, April 7, 2015, make
authority.9 1. Purpose
the following correction:
Brent J. Fields, On page 18664, in the second column, On June 5, 2014, in a speech entitled
Secretary. on the thirty-first line from the top, ‘‘Enhancing Our Market Equity
[FR Doc. 2015–08451 Filed 4–13–15; 8:45 am] ‘‘May 7, 2015’’ is corrected to read Structure,’’ Mary Jo White, Chair of the
BILLING CODE 8011–01–P
‘‘April 28, 2015.’’
1 15 U.S.C. 78s(b)(1).
[FR Doc. C1–2015–07851 Filed 4–13–15; 8:45 am] 2 15 U.S.C. 78a.
9 17 CFR 200.30–3(a)(73). BILLING CODE 1505–01–D 3 17 CFR 240.19b–4.
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Document Created: 2015-12-18 11:09:53
Document Modified: 2015-12-18 11:09:53
| 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 20041 |
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