[Federal Register Volume 79, Number 104 (Friday, May 30, 2014)]
[Notices]
[Pages 31162-31163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-12520]
[[Page 31162]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72240; File No. SR-OC-2014-01]
Self-Regulatory Organizations; OneChicago, LLC; Notice of Filing
of Proposed Rule Change to Suspend Competitive Trading of EFPs
May 23, 2014.
Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934
(the ``Act''),\1\ notice is hereby given that on May 23, 2014,
OneChicago, LLC (``OneChicago,'' ``OCX,'' or the ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule changes 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 changes from interested persons. OneChicago has also
filed this proposed 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'')
\2\ on May 13, 2014.
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\1\ 15 U.S.C. 78s(b)(7).
\2\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Description of the Proposed Rule
Change
OneChicago is proposing to file with the SEC Notice to Members
(``NTM'') 2014-5. NTM 2014-5 suspends the trading of competitive
Exchange of Future for Physical (``EFP'') transactions. After the close
of trading on May 12, 2014, market participants may no longer execute
transactions in competitive EFPs on the OCX.BETS central limit order
book. Market participants may, however, continue to transact privately-
negotiated, off-exchange EFPs and report the futures portion of such
trades through the Exchange's block and EFP system called OCX.BETS in
accordance with OCX Rule 416.
The 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 changes and
discussed any comments it received on the proposed rule changes. 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
The purpose of OneChicago's filing is to suspend, until further
notice, competitive trading of EFPs on the OneChicago System.
OneChicago is taking this action due to concerns expressed by the SEC
Division of Trading and Markets with respect to OneChicago's offering
of competitive EFP transactions.
2. Statutory Basis
OneChicago believes that the proposed rule change is consistent
with Section 6(b) of the Act,\3\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\4\ in particular, in that it
is designed to foster cooperation and coordination with persons engaged
in facilitating transactions in securities, and remove impediments to
and perfect the mechanism of a free and open market and national market
system. OneChicago believes that suspending transactions with uncertain
regulatory requirements will allow market participants to execute only
those types of transactions that are certain to comply with the Act and
the CEA.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78(f)(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. The Exchange believes that the proposed rule
change is equitable and not unfairly discriminatory because it applies
to all market participants equally.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Comments on the OneChicago proposed rule change have not been
solicited and none have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change became effective on May 12, 2014.
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.\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-2014-01 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-2014-01. 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
[[Page 31163]]
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-2014-01, and should be submitted on or before June 20, 2014.
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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-12520 Filed 5-29-14; 8:45 am]
BILLING CODE 8011-01-P