[Federal Register Volume 79, Number 224 (Thursday, November 20, 2014)]
[Notices]
[Pages 69159-69160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27448]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73599; File No. SR-OC-2014-05]
Self-Regulatory Organizations; OneChicago, LLC; Notice of Filing
of Proposed Rule Change To Expand the Trading Hours for Bilateral Block
Trades and Bilateral EFP Trades
November 14, 2014.
Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934
(the ``Act''),\1\ notice is hereby given that on October 23, 2014,
OneChicago, LLC (``OneChicago,'' ``OCX,'' or the ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change described in Items I, II, and III below, which
Items have been prepared by the self-regulatory organization. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons. OneChicago has also filed
this rule change with the Commodity Futures Trading Commission
(``CFTC''). OneChicago filed a written certification with the CFTC
under Section 5c(c) of the Commodity Exchange Act (``CEA'') on October
23, 2014.
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\1\ 15 U.S.C. 78s(b)(7).
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I. Self-Regulatory Organization's Description of the Proposed Rule
Change
OCX is proposing to expand its Trading Hours for bilateral block
trades and bilateral Exchange of Future for Physical (``EFP'') trades.
Currently, bilateral block trades and bilateral EFP trades are
permitted to be reported to the Exchange beginning at 8:00 a.m. Central
Time (``CT'') until 4:00 p.m. CT. Under the proposed change, market
participants will be permitted to report these bilateral trades
beginning at 7:00 a.m. CT. The closing time for reporting bilateral
block trades and bilateral EFP trades will remain unchanged at 4:00
p.m. CT.
The text of the proposed rule change is attached as Exhibit 4 to
the filing submitted by the Exchange but is not attached to the
published notice of the filing.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, OneChicago included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the
[[Page 69160]]
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of OneChicago's filing is to update its Trading Hours
by expanding the reporting time for bilateral block and bilateral EFP
trades. Currently, bilateral trades may be reported to OneChicago
beginning at 8:00 a.m. CT and concluding at 4:00 p.m. CT. This
reporting period opens thirty minutes earlier--and closes one hour
later--than the standard market hours, which are 8:30 a.m.-3:00 p.m. CT
(3:15 p.m. for futures overlaying ETFs).
By expanding the bilateral trade reporting hours, OneChicago will
allow market participants to utilize liquidity in the pre-market period
when hedging their bilateral block trades, and also to generally
increase the hours for reporting a bilateral EFP. Since the Exchange
Rules require the reporting of bilateral trades within a certain
timeframe, market participants cannot execute the underlying security
portion of their block and EFP trades before permissible reporting
hours. With the proposed change, market participants will be able to
execute and timely report bilateral trades that involved underlying
security executions that occurred as early as 7:00 a.m. CT.
2. Statutory Basis
OneChicago believes that the proposed rule change is consistent
with Section 6(b) of the Act,\2\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\3\ 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 expanding the bilateral trade
reporting hours removes an impediment to trading that OneChicago market
participants currently experience. By restricting bilateral trade
reporting to an 8:00 a.m. CT opening time, market participants are
currently unable to report bilateral trades executed before that time.
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\2\ 15 U.S.C. 78f(b).
\3\ 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 proposed rule change will
impose any impact, or impose any burden, on competition not necessary
or appropriate in furtherance of the purposes of the Act. The rule
change simply expands the trading hours for bilateral trades and does
not impose any new burdens on any market participants. The Exchange
believes that the proposed rule change is equitable and not unfairly
discriminatory because all of the amended rules 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 rule change will become operative on November 10, 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.\4\
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\4\ 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-2014-05 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-OC-2014-05. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal offices of the Exchange.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-OC-2014-05,
and should be submitted on or before December 11, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-27448 Filed 11-19-14; 8:45 am]
BILLING CODE 8011-01-P