80_FR_55847 80 FR 55668 - Securities Exchange Act of 1934; In the Matter of the Options Clearing Corporation; Order Discontinuing the Automatic Stay

80 FR 55668 - Securities Exchange Act of 1934; In the Matter of the Options Clearing Corporation; Order Discontinuing the Automatic Stay

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 179 (September 16, 2015)

Page Range55668-55669
FR Document2015-23241

Federal Register, Volume 80 Issue 179 (Wednesday, September 16, 2015) 
[Federal Register Volume 80, Number 179 (Wednesday, September 16, 2015)]
[Notices]
[Pages 55668-55669]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23241]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 75886]


Securities Exchange Act of 1934; In the Matter of the Options 
Clearing Corporation; Order Discontinuing the Automatic Stay

September 10, 2015.
    This matter comes before the Commission on the Options Clearing 
Corporation's (``OCC'') motion to lift the

[[Page 55669]]

automatic stay of the approval, through delegated authority, of OCC's 
plan for raising additional capital (``Capital Plan'') to support its 
function as a systemically important financial market utility. On 
January 26, 2015, the Commission issued a notice of filing of the 
proposed rule change regarding the Capital Plan.\1\ After consideration 
of the record in the proposed rule change, the Division of Trading and 
Markets, for the Commission pursuant to delegated authority, issued an 
order approving (``Approval Order'') the Capital Plan on March 6, 
2015.\2\
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    \1\ Securities Exchange Act Release No. 74136 (January 26, 
2015), 80 FR 5171 (January 30, 2015) (SR-OCC-2015-02).
    \2\ Order Approving Proposed Rule Change Concerning a Proposed 
Capital Plan for Raising Additional Capital That Would Support the 
Options Clearing Corporation's Function as a Systemically Important 
Financial Market Utility, Securities Exchange Act Release No. 74452 
(March 6, 2015), 80 FR 13058 (March 12, 2015) (SR-OCC-2015-02). The 
Capital Plan was previously filed as an advance notice pursuant to 
Section 806(e)(1) of the Payment, Clearing, and Settlement 
Supervision Act of 2010. See 12 U.S.C. 5465(e)(1). The Commission 
issued a notice of no objection to the advance notice on February 
26, 2015. See Securities Exchange Act Release No. 74387 (February 
26, 2015), 80 FR 12215 (March 6, 2015) (SR-OCC-2014-813).
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    BATS Global Markets, Inc. (``BATS''), BOX Options Exchange LLC 
(``BOX''), KCG Holdings, Inc. (``KCG''), Miami International Securities 
Exchange, LLC (``MIAX''), and Susquehanna International Group, LLP 
(``SIG'') (collectively ``Petitioners'') each filed petitions for 
review of the Approval Order, challenging the action taken by delegated 
authority. The filing of the petitions automatically stayed the 
Approval Order pursuant to Commission Rule of Practice 431(e).\3\ The 
Commission has entered a separate Order Granting the Petitions for 
Review and Scheduling Filing of Statements.\4\
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    \3\ 17 CFR 201.431(e).
    \4\ See Order Granting Petitions for Review and Scheduling 
Filing of Statements, Securities Exchange Act Release No. 75885 
(September 10, 2015).
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    In response to the automatic stay imposed by the filing of the 
petitions to review the Approval Order, OCC filed a Motion to Lift the 
Stay on April 2, 2015, citing the public policy reasons for 
implementing the Capital Plan. The Petitioners responded, arguing that 
continuing the automatic stay is appropriate in light of the important 
policy and competition issues raised by the Approval Order.
    The Commission finds that it is in the public interest to lift the 
stay during the pendency of the Commission's review. Under the 
circumstances of this case, the Commission believes, on balance, that 
strengthening the capitalization of a systemically important clearing 
agency, such as OCC, is a compelling public interest. The Commission 
also believes that the concerns raised by the Petitioners regarding 
potential monetary and competitive harm do not currently justify 
maintaining the stay during the pendency of the Commission's review. 
Nor does the Commission believe that lifting the stay precludes 
meaningful review of the Approval Order.
    For the reasons stated above, it is hereby:
    Ordered that the automatic stay of delegated action pursuant to 
Commission Rule of Practice 431(e) \5\ is hereby discontinued, and that 
OCC's Motion to Lift Stay of the staff's action in approving by 
delegated authority File No. SR-OCC-2015-02 \6\ is granted.
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    \5\ See supra note 4.
    \6\ See supra note 2.
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    The order approving such proposed rule change shall remain in 
effect.

    By the Commission.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-23241 Filed 9-15-15; 8:45 am]
 BILLING CODE 8011-01-P

55668 Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices member organizations with a credit exchanges. These adjustments are Paper Comments designed to incentivize increased reflective of the intent to increase the • Send paper comments in triplicate midpoint liquidity on PSX. order flow on the Exchange. For these to Secretary, Securities and Exchange Additionally, the Exchange believes reasons, the Exchange does not believe Commission, 100 F Street NE., providing a greater credit will act as an that the proposed changes will impair Washington, DC 20549–1090. incentive for members to increase their the ability of members or competing All submissions should refer to File participation on the Exchange. The order execution venues to maintain Number SR–Phlx–2015–78. This file Exchange believes that the proposed their competitive standing in the number should be included on the change to decrease to the credit for other financial markets. Moreover, because subject line if email is used. To help the non-displayed orders that provide there are numerous competitive Commission process and review your liquidity is reasonable because the alternatives to the use of the Exchange, comments more efficiently, please use Exchange no longer needs to provide an it is likely that the Exchange will lose only one method. The Commission will incentive for members to provide market share as a result of the changes post all comments on the Commission’s liquidity in other non-displayed orders. if they are unattractive to market Internet Web site (http://www.sec.gov/ The Exchange also believes the participants. rules/sro.shtml). Copies of the proposed change will incentivize greater Accordingly, Phlx does not believe submission, all subsequent use of midpoint orders over other non- that the proposed rule changes will amendments, all written statements displayed orders and thus increase the impair the ability of members or with respect to the proposed rule activity at the midpoint on the market, competing order execution venues to change that are filed with the which, is beneficial to all members. maintain their competitive standing in Commission, and all written The Exchange believes that the the financial markets. communications relating to the proposed rule changes to non-displayed proposed rule change between the order credits are consistent with an C. Self-Regulatory Organization’s Commission and any person, other than equitable allocation of fees and are not Statement on Comments on the those that may be withheld from the unfairly discriminatory because they are Proposed Rule Change Received From uniformly available to all members and public in accordance with the Members, Participants, or Others affect all members equally and in the provisions of 5 U.S.C. 552, will be same way. No written comments were either available for Web site viewing and solicited or received. printing in the Commission’s Public B. Self-Regulatory Organization’s Reference Room, 100 F Street NE., Statement on Burden on Competition III. Date of Effectiveness of the Washington, DC 20549, on official Proposed Rule Change and Timing for business days between the hours of The Exchange does not believe that Commission Action the proposed rule change will result in 10:00 a.m. and 3:00 p.m. Copies of such any burden on competition that is not The foregoing rule change has become filing also will be available for necessary or appropriate in furtherance effective pursuant to Section inspection and copying at the principal of the purposes of the Act, as amended.5 19(b)(3)(A)(ii) of the Act.6 At any time office of the Exchange. All comments Phlx notes that it operates in a highly within 60 days of the filing of the received will be posted without change; competitive market in which market proposed rule change, the Commission the Commission does not edit personal participants can readily favor dozens of summarily may temporarily suspend identifying information from different competing exchanges and such rule change if it appears to the submissions. You should submit only alternative trading systems if they deem Commission that such action is information that you wish to make charges at a particular venue to be necessary or appropriate in the public available publicly. All submissions excessive, or credit opportunities interest, for the protection of investors, should refer to File Number SR–Phlx– available at other venues to be more or otherwise in furtherance of the 2015–78 and should be submitted on or favorable. In such an environment, the purposes of the Act. If the Commission before October 7, 2015. Exchange must continually adjust its takes such action, the Commission shall For the Commission, by the Division of charges and credits to remain institute proceedings to determine Trading and Markets, pursuant to delegated competitive with other exchanges. whether the proposed rule should be authority.7 Because competitors are free to modify approved or disapproved. Robert W. Errett, their own charges and credits in Deputy Secretary. response, and because market IV. Solicitation of Comments [FR Doc. 2015–23218 Filed 9–15–15; 8:45 am] participants may readily adjust their Interested persons are invited to BILLING CODE 8011–01–P order routing practices, the Exchange submit written data, views, and believes that the degree to which arguments concerning the foregoing, changes to charges and credits in this including whether the proposed rule SECURITIES AND EXCHANGE market may impose any burden on change is consistent with the Act. COMMISSION competition is extremely limited. Comments may be submitted by any of In this instance, the slight decrease to [Release No. 75886] the following methods: the charge to member organizations Securities Exchange Act of 1934; In the entering orders in the PSX System and Electronic Comments Matter of the Options Clearing to credits for non-displayed orders with asabaliauskas on DSK7TPTVN1PROD with NOTICES midpoint pegging that provide liquidity • Use the Commission’s Internet Corporation; Order Discontinuing the comment form (http://www.sec.gov/ Automatic Stay and for other non-displayed orders that provide liquidity do not impose a rules/sro.shtml); or September 10, 2015. burden on competition because • Send an email to rule-comments@ This matter comes before the Exchange membership is optional and is sec.gov. Please include File Number SR– Commission on the Options Clearing the subject of competition from other Phlx–2015–78 on the subject line. Corporation’s (‘‘OCC’’) motion to lift the 5 15 U.S.C. 78f(b)(8). 6 15 U.S.C. 78s(b)(3)(A)(ii). 7 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 18:18 Sep 15, 2015 Jkt 235001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\16SEN1.SGM 16SEN1

Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices 55669 automatic stay of the approval, through such as OCC, is a compelling public products. The text of the proposed rule delegated authority, of OCC’s plan for interest. The Commission also believes change is available on the Exchange’s raising additional capital (‘‘Capital that the concerns raised by the Web site (http://www.ise.com), at the Plan’’) to support its function as a Petitioners regarding potential monetary principal office of the Exchange, and at systemically important financial market and competitive harm do not currently the Commission’s Public Reference utility. On January 26, 2015, the justify maintaining the stay during the Room. Commission issued a notice of filing of pendency of the Commission’s review. the proposed rule change regarding the Nor does the Commission believe that II. Self-Regulatory Organization’s Capital Plan.1 After consideration of the lifting the stay precludes meaningful Statement of the Purpose of, and record in the proposed rule change, the review of the Approval Order. Statutory Basis for, the Proposed Rule Division of Trading and Markets, for the For the reasons stated above, it is Change Commission pursuant to delegated hereby: In its filing with the Commission, the authority, issued an order approving Ordered that the automatic stay of self-regulatory organization included (‘‘Approval Order’’) the Capital Plan on delegated action pursuant to statements concerning the purpose of, March 6, 2015.2 Commission Rule of Practice 431(e) 5 is and basis for, the proposed rule change BATS Global Markets, Inc. (‘‘BATS’’), hereby discontinued, and that OCC’s and discussed any comments it received BOX Options Exchange LLC (‘‘BOX’’), Motion to Lift Stay of the staff’s action on the proposed rule change. The text KCG Holdings, Inc. (‘‘KCG’’), Miami in approving by delegated authority File of these statements may be examined at International Securities Exchange, LLC No. SR–OCC–2015–02 6 is granted. the places specified in Item IV below. (‘‘MIAX’’), and Susquehanna The order approving such proposed The self-regulatory organization has International Group, LLP (‘‘SIG’’) rule change shall remain in effect. prepared summaries, set forth in (collectively ‘‘Petitioners’’) each filed By the Commission. sections A, B and C below, of the most petitions for review of the Approval Robert W. Errett, significant aspects of such statements. Order, challenging the action taken by Deputy Secretary. delegated authority. The filing of the A. Self-Regulatory Organization’s [FR Doc. 2015–23241 Filed 9–15–15; 8:45 am] Statement of the Purpose of, and petitions automatically stayed the Approval Order pursuant to BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule Commission Rule of Practice 431(e).3 Change The Commission has entered a separate SECURITIES AND EXCHANGE 1. Purpose Order Granting the Petitions for Review COMMISSION On June 6, 2013 the ISE implemented and Scheduling Filing of Statements.4 In response to the automatic stay [Release No. 34–75874; File No. SR–ISE– a temporary Managed Data Access imposed by the filing of the petitions to 2015–25] Service program that established a new review the Approval Order, OCC filed a pricing and distribution model for the Motion to Lift the Stay on April 2, 2015, Self-Regulatory Organizations; sale of a number of real-time market citing the public policy reasons for International Securities Exchange, data products.3 The Exchange extended implementing the Capital Plan. The LLC; Notice of Filing and Immediate this program for an additional six month Petitioners responded, arguing that Effectiveness of Proposed Rule period on December 20, 2013,4 and then continuing the automatic stay is Change To Amend the Schedule of on September 17, 2014 instituted appropriate in light of the important Fees another temporary program on the same policy and competition issues raised by terms for a one year period set to expire September 10, 2015. the Approval Order. on August 31, 2015.5 The Exchange now Pursuant to Section 19(b)(1) of the proposes to extend its current Managed The Commission finds that it is in the Securities Exchange Act of 1934 (the public interest to lift the stay during the Data Access Service program for an ‘‘Act’’),1 and Rule 19b–4 thereunder,2 additional one year period ending pendency of the Commission’s review. notice is hereby given that on August Under the circumstances of this case, August 31, 2016 so that the Exchange 27, 2015, the International Securities can continue to provide this alternative the Commission believes, on balance, Exchange, LLC (the ‘‘Exchange’’ or the that strengthening the capitalization of a delivery option for ISE data feeds.6 ‘‘ISE’’) filed with the Securities and Managed Data Access Service is a systemically important clearing agency, Exchange Commission the proposed pricing and administrative option 1 Securities Exchange Act Release No. 74136 rule change, as described in Items I and (January 26, 2015), 80 FR 5171 (January 30, 2015) II below, which items have been 3 See Securities Exchange Act Release No. 69806 (SR–OCC–2015–02). prepared by the self-regulatory (June 20, 2013), 78 FR 38424 (June 26, 2013) (ISE– 2 Order Approving Proposed Rule Change organization. The Commission is 2013–39). The Exchange also offers a similar Concerning a Proposed Capital Plan for Raising publishing this notice to solicit Managed Data Access Service program for its Additional Capital That Would Support the Options Implied Volatility and Greeks Feed. See Securities Clearing Corporation’s Function as a Systemically comments on the proposed rule change Exchange Act Release No. 65678 (November 3, Important Financial Market Utility, Securities from interested persons. 2011), 76 FR 70178 (November 10, 2011) (ISE– Exchange Act Release No. 74452 (March 6, 2015), 2011–67). This filing does not apply to the Managed 80 FR 13058 (March 12, 2015) (SR–OCC–2015–02). I. Self-Regulatory Organization’s Data Access Service program for the Implied The Capital Plan was previously filed as an advance Statement of the Terms of Substance of Volatility and Greeks Feed, which is a permanent notice pursuant to Section 806(e)(1) of the Payment, the Proposed Rule Change program. Clearing, and Settlement Supervision Act of 2010. 4 See Securities Exchange Act Release No. 71230 asabaliauskas on DSK7TPTVN1PROD with NOTICES See 12 U.S.C. 5465(e)(1). The Commission issued a The ISE proposes to amend its (January 2, 2014), 79 FR 1405 (January 8, 2014) notice of no objection to the advance notice on Schedule of Fees to extend its Managed (ISE–2013–74). February 26, 2015. See Securities Exchange Act Data Access Service program for the sale 5 See Securities Exchange Act Release No. 73276 Release No. 74387 (February 26, 2015), 80 FR 12215 (October 1, 2014), 79 FR 60545 (October 7, 2014) (March 6, 2015) (SR–OCC–2014–813). of a number of real-time market data (ISE–2014–41). 3 17 CFR 201.431(e). 6 The current Managed Data Access Service 5 See supra note 4. 4 See Order Granting Petitions for Review and program provides an alternative delivery option for 6 See supra note 2. Scheduling Filing of Statements, Securities the Real-time Depth of Market Raw Data Feed 1 15 U.S.C. 78s(b)(1). Exchange Act Release No. 75885 (September 10, (‘‘Depth Feed’’), the Order Feed, the Top Quote 2015). 2 17 CFR 240.19b–4. Feed, and the Spread Feed. VerDate Sep<11>2014 18:18 Sep 15, 2015 Jkt 235001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 E:\FR\FM\16SEN1.SGM 16SEN1


Document Created: 2018-02-26 10:16:31
Document Modified: 2018-02-26 10:16:31
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 55668 
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