82 FR 57799 - Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX PEARL Rules 517A, Aggregate Risk Manager for EEMs (“ARM-E”), and 517B, Aggregate Risk Manager for Market Makers (“ARM-M”)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 234 (December 7, 2017)
Federal Register Volume 82, Issue 234 (December 7, 2017)
| Page Range | 57799-57803 | |
| FR Document | 2017-26321 |
[Federal Register Volume 82, Number 234 (Thursday, December 7, 2017)] [Notices] [Pages 57799-57803] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-26321] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82197; File No. SR-PEARL-2017-37] Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX PEARL Rules 517A, Aggregate Risk Manager for EEMs (``ARM-E''), and 517B, Aggregate Risk Manager for Market Makers (``ARM-M'') December 1, 2017. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 [[Page 57800]] thereunder,\2\ notice is hereby given that on November 28, 2017, MIAX PEARL, LLC (``MIAX PEARL'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') a proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend Exchange Rules 517A, Aggregate Risk Manager for EEMs (``ARM-E''), and 517B, Aggregate Risk Manager for Market Makers (``ARM-M''). The text of the proposed rule change is available on the Exchange's Web site at http://www.miaxoptions.com/rule-filings/pearl at MIAX PEARL's principal office, 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 Exchange 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 Exchange 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 Exchange Rule 517A, ARM-E, to add additional detail to subsection (b), and to adopt new rule text in Interpretations and Policies .01, to state that immediate-or-cancel (``IOC'') Orders \3\ are not EEM ARM Eligible Orders.\4\ The Exchange also proposes to amend Exchange Rule 517B, ARM-M, to add additional detail to subsection (b), and to adopt new rule text in Interpretations and Policies .02, to state that immediate-or-cancel (``IOC'') Orders are not MM ARM Eligible Orders.\5\ --------------------------------------------------------------------------- \3\ An immediate-or-cancel order is an order that is to be executed in whole or in part upon receipt. Any portion not so executed is cancelled. See Exchange Rule 516(e). \4\ See Exchange Rule 517A(a). \5\ See Exchange Rule 517B(a). --------------------------------------------------------------------------- ARM-E ARM-E protects MIAX PEARL Electronic Exchange Members (``EEMs'') \6\ and assists them in managing risk by maintaining a counting program (``EEM Counting Program'') \7\ for each participating EEM who has submitted an order in an EEM Specified Option Class \8\ using a specified market participant identifier (``MPID'') \9\ of the EEM and delivered via the MEO Interface \10\ (an ``EEM ARM Eligible Order''). The EEM Counting Program counts the number of contracts executed by an EEM from an EEM ARM Eligible Order (the ``EEM ARM Contracts'') within a specified time period that has been established by the EEM (the ``EEM Specified Time Period'').\11\ The EEM Specified Time Period cannot exceed 15 seconds.\12\ The Exchange currently provides that contracts executed as a result of an immediate-or-cancel (``IOC'') order submitted by such EEM are not included in a specific EEM's EEM Counting Program.\13\ --------------------------------------------------------------------------- \6\ The term ``Electronic Exchange Member'' or ``EEM'' means the holder of a Trading Permit who is a Member representing as agent Public Customer Orders or Non-Customer Orders on the Exchange and those non-Market Maker Members conducting proprietary trading. Electronic Exchange Members are deemed ``members'' under the Exchange Act. See Exchange Rule 100. \7\ See Exchange Rule 517A(a). \8\ An ``EEM Specified Option Class'' is a class which the EEM has designated as a class to be protected via ARM-E. See Exchange Rule 517A(a). \9\ The term ``MPID'' means unique market participant identifier. See Exchange Rule 100. \10\ The term ``MEO Interface'' means a binary order interface used for submitting certain order types (as set forth in Rule 516) to the MIAX PEARL System. See Exchange Rule 100. \11\ See Exchange Rule 517A(a). \12\ Id. \13\ See Exchange Rule 517A, Interpretations and Policies .01. --------------------------------------------------------------------------- The EEM may also establish for each EEM Specified Option Class an EEM Allowable Engagement Percentage (the ``EEM Allowable Engagement Percentage''),\14\ which is a number of contracts, divided by the size of the orders, executed within the Specified Time Period, equal to or over which the ARM-E will be triggered. When an execution of an EEM ARM Contract from an EEM ARM Eligible Order occurs, the System \15\ will look back over the EEM Specified Time Period to determine whether the sum of contract executions from such EEM ARM Eligible Order during such EEM Specified Time Period triggers the ARM-E.\16\ --------------------------------------------------------------------------- \14\ See Exchange Rule 517A(c). \15\ The term ``System'' means the automated trading system used by the Exchange for the trading of securities. See Exchange Rule 100. \16\ See Exchange Rule 517A(c). --------------------------------------------------------------------------- The System will engage the ARM-E in a particular EEM Specified Option Class when the EEM Counting Program has determined that an EEM has executed during the EEM Specified Time Period a number of EEM ARM Contracts from an EEM ARM Eligible Order equal to or above their EEM Allowable Engagement Percentage. ARM-E will then, until the EEM sends a notification to the System of the intent to reengage and submits a new order in the EEM Specified Option Class: (i) Automatically cancel the EEM ARM Eligible Orders in all series of that particular EEM Specified Option Class and (ii) reject new orders by the EEM in all series of that particular EEM Specified Option Class submitted using the MEO Interface.\17\ --------------------------------------------------------------------------- \17\ See Exchange Rule 517A(b). --------------------------------------------------------------------------- The Exchange now proposes to allow EEMs to submit orders with a time in force of immediate-or-cancel to the Exchange during the time that the ARM-E is engaged by amending Interpretations and Policies .01 to adopt new rule text to state, ``[i]mmediate-or-Cancel (``IOC'') Orders submitted by an EEM using the MEO Interface are not EEM ARM Eligible Orders.'' The Exchange also proposes to remove the existing text in Interpretations and Policies .01 in its entirety which states, ``[t]he System does not include in a specific EEM's EEM Counting Program contacts executed as a result of an immediate-or-cancel (``IOC'') order submitted by such EEM.'' By adopting text that explicitly states that IOC orders submitted by an EEM using the MEO Interface are not EEM ARM Eligible Orders, there is no longer a need to indicate that contracts executed as a result of an IOC order submitted by an EEM are not included in the Counting Program, as only EEM ARM Eligible Orders will be included in the EEM Counting Program. Additionally, Rule 517A(b) provides that when the ARM-E is engaged, the System will, (i) automatically cancel the EEM ARM Eligible Orders in all series of that particular EEM Specified Option Class and (ii) reject new orders by the EEM in all series of that particular EEM Specified Option Class submitted using the MEO Interface. The Exchange now proposes to amend subsection (b)(ii) to state that the System will reject EEM ARM Eligible Orders submitted by the EEM, thereby allowing IOC orders to be submitted to the Exchange for trading when ARM-E is engaged. [[Page 57801]] ARM-M ARM-M protects MIAX PEARL Market Makers \18\ and assists them in managing risk by maintaining a counting program (``MM Counting Program'') for each Market Maker who has submitted an order in an option class (an ``MM Option Class'') delivered via the MEO Interface (an ``MM ARM Eligible Order'').\19\ The MM Counting Program counts the number of contracts executed by a Market Maker from an MM ARM Eligible Order (the ``MM ARM Contracts'') within a specified time period that has been established by the Market Maker or as a default setting, as defined below (the ``MM Specified Time Period'').\20\ The MM Specified Time Period cannot exceed 15 seconds whether established by the Market Maker or as a default setting.\21\ The Exchange currently provides that contracts executed as a result of an immediate-or-cancel (``IOC'') order submitted by such MM are not included in a specific MM's MM Counting Program.\22\ --------------------------------------------------------------------------- \18\ The term ``Market Maker'' or ``MM'' means a Member registered with the Exchange for the purpose of making markets in options contracts traded on the Exchange and that is vested with the rights and responsibilities specified in Chapter VI of the MIAX PEARL Rules. See Exchange Rule 100. \19\ See Exchange Rule 517B(a). \20\ Id. \21\ Id. \22\ See Exchange Rule 517B, Interpretations and Policies .02. --------------------------------------------------------------------------- The Market Maker may also establish for each MM Option Class an MM Allowable Engagement Percentage. When an execution of an MM ARM Contract from an MM ARM Eligible Order occurs, the System will look back over the MM Specified Time Period to determine whether the sum of contract executions from such MM ARM Eligible Order during such MM Specified Time Period triggers the ARM-M.\23\ --------------------------------------------------------------------------- \23\ See Exchange Rule 517B(c). --------------------------------------------------------------------------- The System will engage the ARM-M in a particular MM Option Class when the MM Counting Program has determined that a Market Maker has executed during the MM Specified Time Period a number of MM ARM Contracts from an MM ARM Eligible Order equal to or above their MM Allowable Engagement Percentage. The ARM-M will then, until the Market Maker sends a notification to the System of the intent to reengage and submits a new order in the MM Option Class: (i) Automatically cancel the MM ARM Eligible Orders in all series of that particular MM Option Class and (ii) reject new orders by the Market Maker in all series of that particular MM Option Class submitted using the MEO Interface.\24\ --------------------------------------------------------------------------- \24\ See Exchange Rule 517B(b). --------------------------------------------------------------------------- The Exchange now proposes to allow Market Makers to submit orders with a time in force of immediate-or-cancel to the Exchange during the time that the ARM-M is engaged by amending Interpretations and Policies .02 to state, ``[i]mmediate-or-Cancel (``IOC'') Orders submitted by a Market Maker using the MEO Interface are not MM ARM Eligible Orders.'' The Exchange also proposes to remove the existing text in Interpretations and Policies .02 in its entirety which states, ``[t]he System does not include in a specific MM's MM Counting Program contacts executed as a result of an immediate-or-cancel (``IOC'') order submitted by such MM.'' By adopting text that explicitly states that IOC orders submitted by a Market Maker using the MEO Interface are not MM ARM Eligible Orders, there is no longer a need to indicate contracts executed as a result of an IOC order submitted by a Market Maker are not included in the Counting Program, as only MM ARM Eligible Orders will be included in the MM Counting Program. Additionally, Rule 517B(b) provides that when the ARM-M is engaged, the System will (i) automatically cancel the MM ARM Eligible Orders in all series of that particular MM Option Class and (ii) reject new orders by the Market Maker in all series of that particular MM Option Class submitted using the MEO Interface. The Exchange now proposes to amend subsection (b)(ii) to state that the System will reject new MM ARM Eligible Orders submitted by the Market Maker, thereby allowing IOC orders to be submitted to the Exchange for trading when ARM-M is engaged. ARM-E and ARM-M are designed to mitigate the exposure risk of resting orders on the Exchange. In the Exchange's experience an IOC order is an order that is designed to target specific, identifiable liquidity resting on the Book \25\ that the entering Member desires to trade with. Thus, a Member entering an IOC order does not require the risk management protection of either the ARM-E or ARM-M, as the Member entering the IOC order has made an affirmative decision to attempt to execute that transaction. The Exchange believes Members should not be prevented from submitting these types of orders to the Exchange during the time that the Aggregate Risk Manager is engaged as contracts executed using these types of orders are not included in either the EEM or MM Counting Program.\26\ --------------------------------------------------------------------------- \25\ The term ``Book'' means the electronic book of buy and sell orders and quotes maintained by the System. See Exchange Rule 100. \26\ See supra note 11 and 19. --------------------------------------------------------------------------- The Exchange believes this proposal will allow Members to continue to be protected from the risks that the Aggregate Risk Manager is designed to mitigate, and also allow Members to continue to submit certain orders which Members desire to submit even during the time that the Aggregate Risk Manager is engaged. The Exchange believes allowing Members the ability to send IOC orders to the Exchange will improve liquidity and order execution on the Exchange. The Exchange notes that the proposed rule change is similar to a rule that is currently operative on the Exchange's affiliate, MIAX Options Exchange (``MIAX Options''). Specifically, Interpretations and Policies .01 to MIAX Options Rule 612, Aggregate Risk Manager, states that eQuotes \27\ will remain in the System available for trading when the Aggregate Risk Manager is engaged. IOC Orders on MIAX PEARL are analogous to eQuotes on MIAX Options as eQuotes also have limited time- in-force durations. For example, eQuotes on MIAX Options \28\ may be Auction or Cancel (``AOC''),\29\ Opening Only (``OPG''),\30\ Immediate or Cancel (``IOC''),\31\ or Fill or Kill (``FOK'').\32\ MIAX PEARL and MIAX [[Page 57802]] Options have a number of common Members and where feasible the Exchange strives to provide consistency between the markets so as to avoid confusion among Members. --------------------------------------------------------------------------- \27\ An eQuote is a quote with a specific time in force that does not automatically cancel and replace a previous Standard quote or eQuote. An eQuote can be cancelled by the Market Maker at any time, or can be replaced by another eQuote that contains specific instructions to cancel an existing eQuote. See MIAX Options Exchange Rule 517(a)(2). \28\ MIAX Options provides for a Day eQuote in its rules, however this type of eQuote has not yet been enabled for trading on the MIAX Options Exchange. See MIAX Options Exchange Rule 517(a)(i). \29\ An Auction or Cancel or ``AOC'' eQuote is a quote submitted by a Market Maker to provide liquidity in a specific Exchange process . . . with a time in force that corresponds with the duration of that event and will automatically expire at the end of that event. See MIAX Options Exchange Rule 517(a)(2)(ii). The Exchange notes the current length of an auction on MIAX Options is 100 milliseconds and that the duration of an auction may be no less than 100 milliseconds and no more than 1 second. See MIAX Options Exchange Rule 515A(a)(2)(i)(C). \30\ An opening only or ``OPG'' eQuote is a quote that can be submitted by a Market Maker only during the Opening . . . OPG eQuotes will automatically expire at the end of the Opening Process. See MIAX Options Exchange Rule 517(a)(2)(iii). \31\ An immediate or cancel or ``IOC'' eQuote is an eQuote submitted by a Market Maker that must be matched with another quote or order for an execution in whole or in part upon receipt into the System. Any portion of the IOC eQuote not executed will be immediately canceled. See MIAX Options Exchange Rule 517(a)(2)(iv). \32\ A fill or kill or ``FOK'' eQuote is an eQuote submitted by a Market Maker that must be matched with another quote or order for an execution in its entirety at a single price upon receipt into the System or will be immediately cancelled. See MIAX Options Exchange Rule 517(a)(a)(v). --------------------------------------------------------------------------- The Exchange will announce the implementation date of the proposed rule change by Regulatory Circular to be published no later than 60 days following the operative date of the proposed rule. The implementation date will be no later than 60 days following the issuance of the Regulatory Circular. 2. Statutory Basis MIAX PEARL believes that its proposed rule change is consistent with Section 6(b) of the Act \33\ in general, and furthers the objectives of Section 6(b)(5) of the Act \34\ in particular, in that it is designed 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 regulating, clearing, settling, processing information with respect to, and facilitating transactions in, securities, 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. --------------------------------------------------------------------------- \33\ 15 U.S.C. 78f(b). \34\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that its proposal would promote just and equitable principles of trade by permitting Members to use an order type that is not an ARM Eligible Order during the time that the ARM is engaged. Additionally, the Exchange believes this proposal will promote just and equitable principles of trade by allowing Members to continue to be protected from the risks that the Aggregate Risk Manager is designed to mitigate, and also allow Members to continue to submit certain orders which Members desire to submit even during the time the Aggregate Risk Manager is engaged. ARM-E and ARM-M are designed to mitigate the exposure risk of resting orders. An IOC order is an order that is designed to target specific, identifiable liquidity resting on the Book that the entering Member desires to trade with and thus the Member entering the IOC order does not require the risk management protection of either the ARM-E or ARM-M, as the Member entering the IOC order has made an affirmative decision to attempt to execute that transaction. Therefore, the Exchange believes Members should not be prevented from submitting these types of Orders to the Exchange during the time that the Aggregate Risk Manager is engaged. The Exchange believes allowing Members the ability to send IOC orders to the Exchange while the Aggregate Risk Manager is engaged promotes just and equitable principles of trade by improving liquidity and order execution on the Exchange. The Exchange believes its proposal will result in increased liquidity on the Exchange which will contribute to the operation of a fair and orderly market. The proposed treatment of IOC orders during the time that the ARM is engaged is substantially similar to the treatment of eQuotes on the Exchange's affiliate, MIAX Options.\35\ --------------------------------------------------------------------------- \35\ See MIAX Options Rule 612, Interpretations and Policies .01. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that the proposed rule change will foster competition on the Exchange by providing EEMs and Market Makers with the ability to submit IOC orders during the time that the ARM is engaged and compete for executions. The Exchange does not believe the proposed rule change will impact inter-market competition as the proposal is not designed to address competitive issue and is limited in scope to the behavior of Members of the Exchange. For the reasons stated, the Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act, and believes the proposed change will enhance competition. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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 the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to 19(b)(3)(A) of the Act \36\ and Rule 19b-4(f)(6) \37\ thereunder. --------------------------------------------------------------------------- \36\ 15 U.S.C. 78s(b)(3)(A). \37\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- 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 necessary or appropriate in the public interest, for the protection of investors, or 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 CommentsUse 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-PEARL-2017-37 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-PEARL-2017-37. 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 [[Page 57803]] 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. Persons submitting comments are cautioned that we do not react or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR- PEARL-2017-37 and should be submitted on or before December 28, 2017. --------------------------------------------------------------------------- \38\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\38\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-26321 Filed 12-6-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices 57799
deadline for same-day settling competition. Post-implementation of the comments more efficiently, please use
instructions with the deadline for other accelerated trade guaranty,32 NSCC no only one method. The Commission will
same-day settling non-ETF activity and longer processes next-day settling post all comments on the Commission’s
streamline the processing of same-day instructions differently than other Internet Web site (http://www.sec.gov/
settling items for NSCC and its instructions when they are submitted to rules/sro.shtml). Copies of the
Members. NSCC. As such, NSCC believes that submission, all subsequent
At the same time, NSCC believes that deleting this repetitive language would amendments, all written statements
allowing instructions for same-day promote clarity and accuracy and enable with respect to the proposed rule
settlement that are received by NSCC by Members to readily understand how change that are filed with the
the designated cut-off time may impose such instructions are processed when Commission, and all written
a burden on competition because ETF submitted to NSCC. communications relating to the
agents and ETF sponsors (and third proposed rule change between the
party service providers they use) may (C) Clearing Agency’s Statement on
Commission and any person, other than
have to make coding changes; these Comments on the Proposed Rule
those that may be withheld from the
potential coding changes would be Change Received From Members,
public in accordance with the
different than the coding changes Participants, or Others
provisions of 5 U.S.C. 552, will be
related to the enhanced input and NSCC has not received or solicited available for Web site viewing and
output files described above. However, any written comments relating to this printing in the Commission’s Public
NSCC believes that any burden on proposal. NSCC will notify the Reference Room, 100 F Street NE.,
competition that may result from this Commission of any written comments Washington, DC 20549 on official
proposed change would be necessary received by NSCC. business days between the hours of
and appropriate in furtherance of the 10:00 a.m. and 3:00 p.m. Copies of the
Act.29 As described above, under the III. Date of Effectiveness of the
Proposed Rule Change, and Timing for filing also will be available for
proposal, NSCC would be able to inspection and copying at the principal
receive creation and redemption Commission Action
office of NSCC and on DTCC’s Web site
instructions for same-day settlement Within 45 days of the date of (http://dtcc.com/legal/sec-rule-
until the designated cut-off time of publication of this notice in the Federal filings.aspx). All comments received
11:30 a.m. ET. NSCC believes this Register or within such longer period will be posted without change. Persons
proposed change would be necessary in up to 90 days (i) as the Commission may submitting comments are cautioned that
furtherance of the Act because it would designate if it finds such longer period we do not redact or edit personal
allow NSCC to align this deadline for to be appropriate and publishes its identifying information from comment
same-day settling instructions with the reasons for so finding or (ii) as to which submissions. You should submit only
deadline for other same-day settling the self-regulatory organization information that you wish to make
non-ETF activity and would streamline consents, the Commission will: available publicly. All submissions
the processing of same-day settling (A) By order approve or disapprove should refer to File Number SR–NSCC–
items for both NSCC and its Members.30 such proposed rule change, or 2017–019 and should be submitted on
Furthermore, NSCC believes this (B) institute proceedings to determine or before December 28, 2017.
proposed change would be appropriate whether the proposed rule change
in furtherance of the Act because any should be disapproved. For the Commission, by the Division of
same-day settling instructions that are Trading and Markets, pursuant to delegated
not received by the designated cut-off IV. Solicitation of Comments authority.33
time could still be settled outside of Interested persons are invited to Eduardo A. Aleman,
NSCC (which is what happens today). submit written data, views and Assistant Secretary.
Because same-day settling instructions arguments concerning the foregoing, [FR Doc. 2017–26319 Filed 12–6–17; 8:45 am]
that are received after the deadline including whether the proposed rule BILLING CODE 8011–01–P
would not be assigned a new settlement change is consistent with the Act.
date under the proposal, Members Comments may be submitted by any of
would still be able to settle these same- the following methods: SECURITIES AND EXCHANGE
day settling instructions that day, COMMISSION
Electronic Comments
outside of NSCC. Therefore, NSCC
believes that any burden on competition • Use the Commission’s Internet [Release No. 34–82197; File No. SR–
derived from the proposed change to comment form (http://www.sec.gov/ PEARL–2017–37]
allow instructions for same-day rules/sro.shtml); or
settlement that are received by NSCC by • Send an email to rule-comments@ Self-Regulatory Organizations; MIAX
the designated cut-off time would be sec.gov. Please include File Number SR– PEARL, LLC; Notice of Filing and
necessary and appropriate as permitted NSCC–2017–019 on the subject line. Immediate Effectiveness of a Proposed
by Section 17A(b)(3)(I) of the Act.31 Rule Change To Amend MIAX PEARL
Paper Comments
In addition, regarding next-day Rules 517A, Aggregate Risk Manager
settling creates and redeems, NSCC • Send paper comments in triplicate for EEMs (‘‘ARM–E’’), and 517B,
believes that the proposed technical to Secretary, Securities and Exchange Aggregate Risk Manager for Market
correction to remove the language Commission, 100 F Street NE., Makers (‘‘ARM–M’’)
Washington, DC 20549.
sradovich on DSK3GMQ082PROD with NOTICES
stating that next-day settling creates and December 1, 2017.
redeems are required to be submitted by All submissions should refer to File
such cut-off time on T would not have Number SR–NSCC–2017–019. This file Pursuant to the provisions of Section
any impact or impose any burden on number should be included on the 19(b)(1) of the Securities Exchange Act
subject line if email is used. To help the of 1934 (‘‘Act’’) 1 and Rule 19b–4
29 15 U.S.C. 78q–1(b)(3)(I). Commission process and review your
30 Supra note 10. 33 17 CFR 200.30–3(a)(12).
31 15 U.S.C. 78q–1(b)(3)(I). 32 Supra note 12. 1 15 U.S.C. 78s(b)(1).
VerDate Sep<11>2014 18:50 Dec 06, 2017 Jkt 244001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1](https://thefederalregister.org/doc/82_FR_58033/page/1.svg)
![57800 Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices
thereunder,2 notice is hereby given that (‘‘IOC’’) Orders are not MM ARM Eligible Order during such EEM
on November 28, 2017, MIAX PEARL, Eligible Orders.5 Specified Time Period triggers the
LLC (‘‘MIAX PEARL’’ or ‘‘Exchange’’) ARM–E.16
ARM–E
filed with the Securities and Exchange The System will engage the ARM–E in
Commission (‘‘Commission’’) a ARM–E protects MIAX PEARL a particular EEM Specified Option Class
proposed rule change as described in Electronic Exchange Members when the EEM Counting Program has
Items I, II, and III below, which Items (‘‘EEMs’’) 6 and assists them in determined that an EEM has executed
have been prepared by the Exchange. managing risk by maintaining a during the EEM Specified Time Period
The Commission is publishing this counting program (‘‘EEM Counting a number of EEM ARM Contracts from
notice to solicit comments on the Program’’) 7 for each participating EEM an EEM ARM Eligible Order equal to or
proposed rule change from interested who has submitted an order in an EEM above their EEM Allowable Engagement
persons. Specified Option Class using a 8
Percentage. ARM–E will then, until the
specified market participant identifier EEM sends a notification to the System
I. Self-Regulatory Organization’s (‘‘MPID’’) of the EEM and delivered via of the intent to reengage and submits a
9
Statement of the Terms of Substance of the MEO Interface 10 (an ‘‘EEM ARM
the Proposed Rule Change new order in the EEM Specified Option
Eligible Order’’). The EEM Counting Class: (i) Automatically cancel the EEM
The Exchange is filing a proposal to Program counts the number of contracts ARM Eligible Orders in all series of that
amend Exchange Rules 517A, Aggregate executed by an EEM from an EEM ARM particular EEM Specified Option Class
Risk Manager for EEMs (‘‘ARM–E’’), and Eligible Order (the ‘‘EEM ARM and (ii) reject new orders by the EEM in
517B, Aggregate Risk Manager for Contracts’’) within a specified time all series of that particular EEM
Market Makers (‘‘ARM–M’’). period that has been established by the Specified Option Class submitted using
The text of the proposed rule change EEM (the ‘‘EEM Specified Time the MEO Interface.17
is available on the Exchange’s Web site Period’’).11 The EEM Specified Time
The Exchange now proposes to allow
at http://www.miaxoptions.com/rule- Period cannot exceed 15 seconds.12 The
EEMs to submit orders with a time in
filings/pearl at MIAX PEARL’s principal Exchange currently provides that
contracts executed as a result of an force of immediate-or-cancel to the
office, and at the Commission’s Public Exchange during the time that the
Reference Room. immediate-or-cancel (‘‘IOC’’) order
submitted by such EEM are not ARM–E is engaged by amending
II. Self-Regulatory Organization’s included in a specific EEM’s EEM Interpretations and Policies .01 to adopt
Statement of the Purpose of, and Counting Program. 13 new rule text to state, ‘‘[i]mmediate-or-
Statutory Basis for, the Proposed Rule The EEM may also establish for each Cancel (‘‘IOC’’) Orders submitted by an
Change EEM Specified Option Class an EEM EEM using the MEO Interface are not
Allowable Engagement Percentage (the EEM ARM Eligible Orders.’’ The
In its filing with the Commission, the
‘‘EEM Allowable Engagement Exchange also proposes to remove the
Exchange included statements
Percentage’’),14 which is a number of existing text in Interpretations and
concerning the purpose of and basis for
contracts, divided by the size of the Policies .01 in its entirety which states,
the proposed rule change and discussed
orders, executed within the Specified ‘‘[t]he System does not include in a
any comments it received on the
proposed rule change. The text of these Time Period, equal to or over which the specific EEM’s EEM Counting Program
ARM–E will be triggered. When an contacts executed as a result of an
statements may be examined at the
execution of an EEM ARM Contract immediate-or-cancel (‘‘IOC’’) order
places specified in Item IV below. The
from an EEM ARM Eligible Order submitted by such EEM.’’ By adopting
Exchange has prepared summaries, set
forth in sections A, B, and C below, of occurs, the System 15 will look back over text that explicitly states that IOC orders
the EEM Specified Time Period to submitted by an EEM using the MEO
the most significant aspects of such
determine whether the sum of contract Interface are not EEM ARM Eligible
statements.
executions from such EEM ARM Orders, there is no longer a need to
A. Self-Regulatory Organization’s indicate that contracts executed as a
Statement of the Purpose of, and 5 See Exchange Rule 517B(a). result of an IOC order submitted by an
Statutory Basis for, the Proposed Rule 6 The term ‘‘Electronic Exchange Member’’ or EEM are not included in the Counting
Change ‘‘EEM’’ means the holder of a Trading Permit who Program, as only EEM ARM Eligible
is a Member representing as agent Public Customer Orders will be included in the EEM
1. Purpose Orders or Non-Customer Orders on the Exchange
and those non-Market Maker Members conducting
Counting Program.
The Exchange proposes to amend proprietary trading. Electronic Exchange Members Additionally, Rule 517A(b) provides
Exchange Rule 517A, ARM–E, to add are deemed ‘‘members’’ under the Exchange Act. that when the ARM–E is engaged, the
additional detail to subsection (b), and See Exchange Rule 100. System will, (i) automatically cancel the
7 See Exchange Rule 517A(a).
to adopt new rule text in Interpretations EEM ARM Eligible Orders in all series
8 An ‘‘EEM Specified Option Class’’ is a class
and Policies .01, to state that immediate- which the EEM has designated as a class to be of that particular EEM Specified Option
or-cancel (‘‘IOC’’) Orders 3 are not EEM protected via ARM–E. See Exchange Rule 517A(a). Class and (ii) reject new orders by the
ARM Eligible Orders.4 The Exchange 9 The term ‘‘MPID’’ means unique market EEM in all series of that particular EEM
also proposes to amend Exchange Rule participant identifier. See Exchange Rule 100. Specified Option Class submitted using
10 The term ‘‘MEO Interface’’ means a binary
517B, ARM–M, to add additional detail the MEO Interface. The Exchange now
order interface used for submitting certain order
to subsection (b), and to adopt new rule types (as set forth in Rule 516) to the MIAX PEARL proposes to amend subsection (b)(ii) to
text in Interpretations and Policies .02, state that the System will reject EEM
sradovich on DSK3GMQ082PROD with NOTICES
System. See Exchange Rule 100.
to state that immediate-or-cancel 11 See Exchange Rule 517A(a). ARM Eligible Orders submitted by the
12 Id.
EEM, thereby allowing IOC orders to be
2 17 CFR 240.19b–4. 13 See Exchange Rule 517A, Interpretations and
submitted to the Exchange for trading
3 An immediate-or-cancel order is an order that is Policies .01.
when ARM–E is engaged.
to be executed in whole or in part upon receipt. 14See Exchange Rule 517A(c).
Any portion not so executed is cancelled. See 15 The term ‘‘System’’ means the automated
Exchange Rule 516(e). trading system used by the Exchange for the trading 16 See Exchange Rule 517A(c).
4 See Exchange Rule 517A(a). of securities. See Exchange Rule 100. 17 See Exchange Rule 517A(b).
VerDate Sep<11>2014 18:50 Dec 06, 2017 Jkt 244001 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1](https://thefederalregister.org/doc/82_FR_58033/page/2.svg)
![Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices 57801
ARM–M particular MM Option Class submitted either the EEM or MM Counting
using the MEO Interface.24 Program.26
ARM–M protects MIAX PEARL The Exchange now proposes to allow The Exchange believes this proposal
Market Makers 18 and assists them in Market Makers to submit orders with a will allow Members to continue to be
managing risk by maintaining a time in force of immediate-or-cancel to protected from the risks that the
counting program (‘‘MM Counting the Exchange during the time that the Aggregate Risk Manager is designed to
Program’’) for each Market Maker who ARM–M is engaged by amending mitigate, and also allow Members to
has submitted an order in an option Interpretations and Policies .02 to state, continue to submit certain orders which
class (an ‘‘MM Option Class’’) delivered ‘‘[i]mmediate-or-Cancel (‘‘IOC’’) Orders Members desire to submit even during
via the MEO Interface (an ‘‘MM ARM submitted by a Market Maker using the the time that the Aggregate Risk
Eligible Order’’).19 The MM Counting MEO Interface are not MM ARM Eligible Manager is engaged. The Exchange
Program counts the number of contracts Orders.’’ The Exchange also proposes to believes allowing Members the ability to
executed by a Market Maker from an remove the existing text in send IOC orders to the Exchange will
MM ARM Eligible Order (the ‘‘MM Interpretations and Policies .02 in its improve liquidity and order execution
ARM Contracts’’) within a specified entirety which states, ‘‘[t]he System on the Exchange.
time period that has been established by does not include in a specific MM’s MM The Exchange notes that the proposed
the Market Maker or as a default setting, Counting Program contacts executed as rule change is similar to a rule that is
as defined below (the ‘‘MM Specified a result of an immediate-or-cancel currently operative on the Exchange’s
Time Period’’).20 The MM Specified (‘‘IOC’’) order submitted by such MM.’’ affiliate, MIAX Options Exchange
Time Period cannot exceed 15 seconds By adopting text that explicitly states (‘‘MIAX Options’’). Specifically,
whether established by the Market that IOC orders submitted by a Market Interpretations and Policies .01 to MIAX
Maker or as a default setting.21 The Maker using the MEO Interface are not Options Rule 612, Aggregate Risk
Exchange currently provides that MM ARM Eligible Orders, there is no Manager, states that eQuotes 27 will
contracts executed as a result of an longer a need to indicate contracts remain in the System available for
immediate-or-cancel (‘‘IOC’’) order executed as a result of an IOC order trading when the Aggregate Risk
submitted by such MM are not included submitted by a Market Maker are not Manager is engaged. IOC Orders on
in a specific MM’s MM Counting included in the Counting Program, as MIAX PEARL are analogous to eQuotes
Program.22 only MM ARM Eligible Orders will be on MIAX Options as eQuotes also have
included in the MM Counting Program. limited time-in-force durations. For
The Market Maker may also establish example, eQuotes on MIAX Options 28
Additionally, Rule 517B(b) provides
for each MM Option Class an MM may be Auction or Cancel (‘‘AOC’’),29
that when the ARM–M is engaged, the
Allowable Engagement Percentage. Opening Only (‘‘OPG’’),30 Immediate or
System will (i) automatically cancel the
When an execution of an MM ARM Cancel (‘‘IOC’’),31 or Fill or Kill
MM ARM Eligible Orders in all series of
Contract from an MM ARM Eligible (‘‘FOK’’).32 MIAX PEARL and MIAX
that particular MM Option Class and (ii)
Order occurs, the System will look back
reject new orders by the Market Maker
over the MM Specified Time Period to 26 See supra note 11 and 19.
in all series of that particular MM
determine whether the sum of contract 27 An eQuote is a quote with a specific time in
Option Class submitted using the MEO
executions from such MM ARM Eligible force that does not automatically cancel and replace
Interface. The Exchange now proposes a previous Standard quote or eQuote. An eQuote
Order during such MM Specified Time to amend subsection (b)(ii) to state that can be cancelled by the Market Maker at any time,
Period triggers the ARM–M.23 the System will reject new MM ARM or can be replaced by another eQuote that contains
The System will engage the ARM–M Eligible Orders submitted by the Market specific instructions to cancel an existing eQuote.
See MIAX Options Exchange Rule 517(a)(2).
in a particular MM Option Class when Maker, thereby allowing IOC orders to 28 MIAX Options provides for a Day eQuote in its
the MM Counting Program has be submitted to the Exchange for trading rules, however this type of eQuote has not yet been
determined that a Market Maker has when ARM–M is engaged. enabled for trading on the MIAX Options Exchange.
executed during the MM Specified Time ARM–E and ARM–M are designed to See MIAX Options Exchange Rule 517(a)(i).
29 An Auction or Cancel or ‘‘AOC’’ eQuote is a
Period a number of MM ARM Contracts mitigate the exposure risk of resting
quote submitted by a Market Maker to provide
from an MM ARM Eligible Order equal orders on the Exchange. In the liquidity in a specific Exchange process . . . with
to or above their MM Allowable Exchange’s experience an IOC order is a time in force that corresponds with the duration
Engagement Percentage. The ARM–M an order that is designed to target of that event and will automatically expire at the
will then, until the Market Maker sends specific, identifiable liquidity resting on end of that event. See MIAX Options Exchange Rule
517(a)(2)(ii). The Exchange notes the current length
a notification to the System of the intent the Book 25 that the entering Member of an auction on MIAX Options is 100 milliseconds
to reengage and submits a new order in desires to trade with. Thus, a Member and that the duration of an auction may be no less
the MM Option Class: (i) Automatically entering an IOC order does not require than 100 milliseconds and no more than 1 second.
cancel the MM ARM Eligible Orders in the risk management protection of either See MIAX Options Exchange Rule 515A(a)(2)(i)(C).
30 An opening only or ‘‘OPG’’ eQuote is a quote
all series of that particular MM Option the ARM–E or ARM–M, as the Member that can be submitted by a Market Maker only
Class and (ii) reject new orders by the entering the IOC order has made an during the Opening . . . OPG eQuotes will
Market Maker in all series of that affirmative decision to attempt to automatically expire at the end of the Opening
execute that transaction. The Exchange Process. See MIAX Options Exchange Rule
517(a)(2)(iii).
18 The term ‘‘Market Maker’’ or ‘‘MM’’ means a believes Members should not be 31 An immediate or cancel or ‘‘IOC’’ eQuote is an
Member registered with the Exchange for the prevented from submitting these types eQuote submitted by a Market Maker that must be
purpose of making markets in options contracts of orders to the Exchange during the matched with another quote or order for an
sradovich on DSK3GMQ082PROD with NOTICES
traded on the Exchange and that is vested with the
rights and responsibilities specified in Chapter VI time that the Aggregate Risk Manager is execution in whole or in part upon receipt into the
engaged as contracts executed using System. Any portion of the IOC eQuote not
of the MIAX PEARL Rules. See Exchange Rule 100.
executed will be immediately canceled. See MIAX
19 See Exchange Rule 517B(a). these types of orders are not included in Options Exchange Rule 517(a)(2)(iv).
20 Id.
32 A fill or kill or ‘‘FOK’’ eQuote is an eQuote
21 Id. 24 SeeExchange Rule 517B(b). submitted by a Market Maker that must be matched
22 See Exchange Rule 517B, Interpretations and 25 Theterm ‘‘Book’’ means the electronic book of with another quote or order for an execution in its
Policies .02. buy and sell orders and quotes maintained by the entirety at a single price upon receipt into the
23 See Exchange Rule 517B(c). System. See Exchange Rule 100. Continued
VerDate Sep<11>2014 18:50 Dec 06, 2017 Jkt 244001 PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1](https://thefederalregister.org/doc/82_FR_58033/page/3.svg)
![Federal Register / Vol. 82, No. 234 / Thursday, December 7, 2017 / Notices 57803
available for Web site viewing and ‘‘Rulebook’’) and CDS Clearing Proposed Rule Change. The text of these
printing in the Commission’s Public Procedures (the ‘‘Procedures’’) to make statements may be examined at the
Reference Room, 100 F Street NE., conforming and clarifying changes places specified in Item IV below. LCH
Washington, DC 20549, on official necessary to implement certain SA has prepared summaries, set forth in
business days between the hours of provisions of the Markets in Financial sections A, B, and C below, of the most
10:00 a.m. and 3:00 p.m. Copies of the Instruments Regulation (‘‘MiFIR’’) 3 that significant aspects of such statements.
filing also will be available for are applicable to central counterparties
inspection and copying at the principal A. Clearing Agency’s Statement of the
(‘‘CCPs’’) authorized under the
office of the Exchange. All comments Purpose of, and Statutory Basis for, the
European Markets Infrastructure
received will be posted without change. Proposed Rule Change
Regulation (‘‘EMIR’’) 4 (each such CCP,
Persons submitting comments are an ‘‘authorized CCP’’). In particular, the 1. Purpose
cautioned that we do not react or edit Proposed Rule Change implements a. Overview
personal identifying information from Article 29 of MiFIR, which requires
comment submissions. You should authorized CCPs to establish effective As noted above, the principal purpose
submit only information that you wish systems, procedures and arrangements of the Proposed Rule Change is to
to make available publicly. All to ensure that transactions in cleared amend LCH SA’s Rulebook and
submissions should refer to File derivatives transactions are submitted Procedures to implement the provisions
Number SR–PEARL–2017–37 and and accepted for clearing on a straight- of MiFIR applicable to authorized CCPs
should be submitted on or before through processing (‘‘STP’’) basis, and and the Indirect Clearing RTS. MiFIR
December 28, 2017. Article 30 of MiFIR, which requires takes effect January 3, 2018 and it is
For the Commission, by the Division of authorized CCPs to establish indirect expected that the Indirect Clearing RTS
Trading and Markets, pursuant to delegated clearing arrangements with respect to will take effect on the same date.
authority.38 exchange-traded derivatives (‘‘ETDs’’) Specifically, Article 29 of MiFIR
Eduardo A. Aleman, that are of ‘‘equivalent effect’’ to the requires authorized CCPs to establish
Assistant Secretary. corresponding requirements under effective systems, procedures and
[FR Doc. 2017–26321 Filed 12–6–17; 8:45 am] EMIR. arrangements to ensure that transactions
BILLING CODE 8011–01–P Regulatory technical standards have in cleared derivatives are submitted and
also been adopted to set more specific accepted for clearing on a straight-
requirements that authorized CCPs must through processing basis. Article 4 of
SECURITIES AND EXCHANGE meet to comply with MiFIR. The EMIR and the Indirect Clearing RTS set
COMMISSION regulatory technical standards for out specific compliance requirements
straight-through processing (‘‘RTS 26’’) for entities that participate in ‘‘indirect
[Release No. 34–82194; File No. SR–LCH
SA–2017–010] were adopted in late 2016.5 More clearing arrangements’’ in connection
recently, the European Commission with OTC derivatives. As an authorized
Self-Regulatory Organizations; LCH adopted regulatory technical standards, CCP, LCH SA is required to amend its
SA; Notice of Filing of Proposed Rule which align the indirect clearing rules and procedures to give effect to
Change, Security-Based Swap requirements under EMIR and MiFIR these provisions of MiFIR and the
Submission, or Advance Notice (‘‘Indirect Clearing RTS’’).6 Indirect Clearing RTS.
Relating to the Implementation of the II. Clearing Agency’s Statement of the Set out below is an explanation of the
Markets in Financial Instruments Purpose of, and Statutory Basis for, the relevant provisions of RTS 26 and the
Regulation Proposed Rule Change Indirect Clearing RTS followed in each
December 1, 2017. In its filing with the Commission, case by a description of the amendments
Pursuant to Section 19(b)(1) of the LCH SA included statements concerning LCH SA has made to its Rulebook and
Securities Exchange Act of 1934 the purpose of and basis for the Procedures to give effect to each RTS.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Proposed Rule Change and discussed Capitalized terms not otherwise defined
notice is hereby given that on November any comments it received on the herein have the meanings ascribed to
21, 2017, Banque Centrale de them in the Rulebook.
Compensation, which conducts 3 Regulation (EU) No 600/2014 of the European
b. Straight-Through Processing
business under the name LCH SA (‘‘LCH Parliament and of the Council of 15 May 2014 on
markets in financial instruments and amending RTS 26 establishes the specific
SA’’), filed with the Securities and Regulation (EU) No 648/2012.
Exchange Commission (‘‘Commission’’) 4 Regulation (EU) No 648/2012 of the European
requirements with which authorized
the proposed rule change (‘‘Proposed Parliament and of the Council of 4 July 2012 on CCPs, trading venues 7 and clearing
Rule Change’’) described in Items I, II OTC derivatives, central counterparties and trade
and III below, which Items have been reporting. 7 The term ‘‘trading venue’’ as used in RTS 26
5 Commission Delegated Regulation (EU) 2017/
primarily prepared by LCH SA. The refers to EU-based venues only (i.e., regulated
582 of 29.6.2016 supplementing Regulation (EU) No markets, multilateral trading facilities and
Commission is publishing this notice to 600/2014 of the European Parliament and of the organized trading facilities). Accordingly, third-
solicit comments on the Proposed Rule Council with regard to regulatory technical country venues (e.g., U.S. swap execution facilities,
Change from interested persons. standards specifying the obligation to clear security-based swap execution facilities, designated
derivatives traded on regulated markets and timing contract markets and national securities exchanges)
I. Clearing Agency’s Statement of the of acceptance for clearing. are not required to comply with the RTS 26
Terms of Substance of the Proposed 6 Commission Delegated Regulation (EU) of provisions applicable to trading venues.
sradovich on DSK3GMQ082PROD with NOTICES
Rule Change 22.9.2017 amending Commission Delegated Notwithstanding this definition, the STP
Regulation (EU) No 149/2013 with regard to amendments described herein will apply with
LCH SA is proposing to amend its (i) regulatory technical standards on indirect clearing respect to all derivatives transactions concluded on
CDS Clearing Rulebook (the arrangements. A separate, but identical, set of RTS swap execution facilities and designated contract
apply to indirect clearing of exchange-traded markets registered with the U.S. Commodity
derivatives. See, Commission Delegated Regulation Futures Trading Commission (‘‘CFTC’’) and the
38 17 CFR 200.30–3(a)(12). (EU) of 22.9.2017 supplementing Regulation (EU) definition of the term ‘‘Trading Venue’’ has been
1 15 U.S.C. 78s(b)(1). No 600/2014 with regard to regulatory technical amended accordingly. See, Section 1.1.1 of the
2 17 CFR 240.19b–4. standards on indirect clearing arrangements. Rulebook.
VerDate Sep<11>2014 18:50 Dec 06, 2017 Jkt 244001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1](https://thefederalregister.org/doc/82_FR_58033/page/5.svg)
Document Created: 2017-12-07 00:34:49
Document Modified: 2017-12-07 00:34:49
| 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 | 82 FR 57799 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR