82 FR 10099 - Self-Regulatory Organizations; OneChicago, LLC; Notice of Filing of Proposed Rule Change Regarding Fraudulent Acts

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 26 (February 9, 2017)

[Federal Register Volume 82, Number 26 (Thursday, February 9, 2017)]
[Notices]
[Pages 10099-10100]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02738]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79979; File No. SR-OC-2017-01]


Self-Regulatory Organizations; OneChicago, LLC; Notice of Filing 
of Proposed Rule Change Regarding Fraudulent Acts

February 6, 2017.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ notice is hereby given that on January 25, 2017, 
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 and II 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 on January 17, 2017.
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    \1\ 15 U.S.C. 78s(b)(7).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    OneChicago is proposing to make two amendments to OCX Rule 601 
(Fraudulent Acts). First, OneChicago is proposing to amend OCX Rule 601 
to clarify that in addition to prohibiting fraudulent acts, the rule 
also prohibits any attempt to engage in any fraudulent act. Further, 
the rule is also being amended to track the language in CFTC Regulation 
180.1 that expressly prohibits the use or employment of any 
manipulative device, scheme, or artifice to defraud.\2\ 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.
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    \2\ 17 CFR 180.1.

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[[Page 10100]]

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 a summary 
of the most significant aspects of such statements.

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

1. Purpose
    The purpose of the proposed rule change to OCX Rule 601 is to 
prohibit attempts to engage in any fraudulent act or scheme that is 
already prohibited by Rule 601. Currently, Rule 601 prohibits Clearing 
Members, Exchange Members, or Access Persons from engaging in any 
fraudulent act or from engaging in any scheme to defraud, deceive or 
trick, in connection with or related to any trade on or other activity 
related to the Exchange or the Exchange's clearinghouse. The proposed 
rule change to Rule 601 broadens the language of the rule to prohibit 
attempts to engage in any fraudulent act or any scheme to defraud, 
deceive or trick. Further, the rule is also being amended to expressly 
prohibit the use or employment of any manipulative device, scheme, or 
artifice to defraud. This rule change is being made upon request by the 
CFTC, and is consistent with CFTC Regulation 180.1 that expressly 
prohibits the use or employment of any manipulative device, scheme or 
artifice to defraud.
2. Statutory Basis
    OneChicago believes that the proposed rule changes are consistent 
with Section 6(b) of the Act,\3\ in general, and furthers the 
objectives of Section 6(b)(5)\4\ in particular in that they are 
intended to prevent fraudulent and manipulative acts and practices, 
promote just and equitable principles of trade, and 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 proposed rule changes provide OneChicago market 
participants with clarity and specificity regarding attempted 
fraudulent acts in relation to OneChicago products. Specifically, the 
proposed rule changes make it clear that attempts to engage in 
fraudulent acts are prohibited, and that the use or employment of any 
manipulative device, scheme or artifice to defraud is also prohibited.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    OneChicago does not believe that the rule change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act, in that the rule change will enhance 
OneChicago's ability to carry out its responsibilities as a self-
regulatory organization. OneChicago believes that the proposed rule 
change is equitable and not unfairly discriminatory because the 
amendments regarding attempted fraudulent acts or schemes apply equally 
to all market participants.

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 proposed rule change will become operative on January 31, 2017. 
At any time within 60 days of the date of the filing by the Exchange of 
a written certification with the CFTC under Section 5c(c) of the CEA, 
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.\5\
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    \5\ 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. 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-2017-01 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-OC-2017-01. 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 the filing also will be available 
for inspection and copying at the principal office 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-2017-01 and should be 
submitted on or before March 2, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-02738 Filed 2-8-17; 8:45 am]
BILLING CODE 8011-01-P