Washington Department of Ecology Marine Flight Data Samples taken from seaplane at 1 foot depth Duplicated averaged, zero values excluded Summer data only Station Lab # Date Ent Log Ent Fecal BLL009 256255 19 Jun 01 1 U 0.00000 1 U BUD005 246373 12 Jun 01 1 U 0.00000 1 U CMB003 246352 12 Jun 01 350 J 2.54407 380 J EAP001 246315 11 Jun 01 1 U 0.00000 1 U EAP001 286315 9 Jul 01 1 U 0.00000 1 U ELB015 246312 11 Jun 01 200 J 2.30103 270 J ELB015 286312 9 Jul 01 3 U 0.47712 6 GRG002 256252 19 Jun 01 1 U 0.00000 1 U GYS004 236210 4 Jun 01 8 0.90309 41 GYS004 276210 2 Jul 01 1 0.00000 8.5 GYS008 236212 4 Jun 01 1 U 0.00000 3 HCB004 246266 12 Jun 01 1 UJ 0.00000 1 UJ OAK004 246363 12 Jun 01 1 0.00000 1 U PSB003 286309 9 Jul 01 1 U 0.00000 1 U PSS019 256260 19 Jun 01 1 U 0.00000 1 U PTH005 256250 19 Jun 01 1 U 0.00000 1 U SAR003 256257 19 Jun 01 1 U 0.00000 1 U SIN001 246350 12 Jun 01 1 UJ 0.00000 1 UJ WPA001 236220 4 Jun 01 2 0.30103 51 WPA001 276220 2 Jul 01 2 0.30103 11.5 WPA003 236225 4 Jun 01 1 U 0.00000 2.5 TOTALS 21 CHECK 21 Log Fecal Entero < 104 Fecal < 43 Entero < 104 & Fecal < 43 Entero < 104 & Fecal > 43 Entero > 104 & Fecal < 43 Entero > 104 & Fecal > 43 0.00000 1 1 1 0.00000 1 1 1 2.57978 1 0.00000 1 1 1 0.00000 1 1 1 2.43136 1 0.77815 1 1 1 0.00000 1 1 1 1.61278 1 1 1 0.92942 1 1 1 0.47712 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 1.70757 1 1 1.06070 1 1 1 0.39794 1 1 1 19 18 18 1 0 2 Washington Department of Ecology Marine Flight Data Samples taken from seaplane at 1 foot depth Duplicated averaged, zero values excluded Station Lab # Date Ent Log Ent Fecal ADM001 466303 14 Nov 00 1 U 0.00000 1 U ADM001 506303 11 Dec 00 1 U 0.00000 1 U ADM002 466300 14 Nov 00 1 UJ 0.00000 1 UJ ADM002 506300 11 Dec 00 1 U 0.00000 1 U ADM003 466306 14 Nov 00 4 U 0.60206 1 U ADM003 506306 11 Dec 00 1 U 0.00000 1 BLL009 466255 15 Nov 00 2 0.30103 2 BLL009 506255 12 Dec 00 2 0.30103 3 BLL009 1046255 23 Jan 01 1 0.00000 2 BLL009 1096255 26 Feb 01 1 U 0.00000 1 U BLL009 1126255 20 Mar 01 1 U 0.00000 1 U BLL009 176255 26 Apr 01 1 U 0.00000 1 U BLL009 256255 19 Jun 01 1 U 0.00000 1 U BLL011 466281 15 Nov 00 7 0.84510 17 BUD005 496373 5 Dec 00 3 0.47712 2 BUD005 1046373 24 Jan 01 43 J 1.63347 15 J BUD005 1096373 27 Feb 01 1 0.00000 1 U BUD005 1126373 21 Mar 01 1 U 0.00000 1 BUD005 1166373 17 Apr 01 1 U 0.00000 1 U BUD005 196373 8 May 01 1 U 0.00000 1 U BUD005 246373 12 Jun 01 1 U 0.00000 1 U CMB003 516352 19 Dec 00 33 1.51851 22 CMB003 1046352 24 Jan 01 26 1.41497 17 J CMB003 1096352 27 Feb 01 3 0.47712 1 CMB003 1126352 21 Mar 01 1 0.00000 1 U CMB003 166352 17 Apr 01 8 0.90309 4 CMB003 196352 8 May 01 1 U 0.00000 1 U CMB003 246352 12 Jun 01 350 J 2.54407 380 J DIS001 466274 15 Nov 00 1 U 0.00000 1 U DNA001 466324 14 Nov 00 1 U 0.00000 1 U DNA001 506324 11 Dec 00 1 U 0.00000 1 U DRA002 466272 15 Nov 00 1 0.00000 1 U DUN001 466279 15 Nov 00 1 U 0.00000 1 U EAP001 466315 14 Nov 00 1 0.00000 1 U EAP001 506315 11 Dec 00 1 U 0.00000 1 U EAP001 1026315 8 Jan 01 1 U 0.00000 1 EAP001 1066315 5 Feb 01 1 U 0.00000 1 EAP001 166315 16 Apr 01 1 U 0.00000 1 U EAP001 196315 7 May 01 1 U 0.00000 1 U EAP001 246315 11 Jun 01 1 U 0.00000 1 U EAP001 286315 9 Jul 01 1 U 0.00000 1 U ELB015 466312 14 Nov 00 1 U 0.00000 1 ELB015 506312 11 Dec 00 8 0.90309 5 ELB015 1026312 8 Jan 01 18 1.25527 12 ELB015 1066312 5 Feb 01 5 0.69897 5 ELB015 166312 16 Apr 01 9 0.95424 11 ELB015 196312 7 May 01 1 U 0.00000 1 U ELB015 246312 11 Jun 01 200 J 2.30103 270 J ELB015 286312 9 Jul 01 3 U 0.47712 6 GOR001 466318 14 Nov 00 1 U 0.00000 1 U GRG002 466252 15 Nov 00 1 U 0.00000 1 U GRG002 1046252 23 Jan 01 1 UJ 0.00000 1 UJ GRG002 1096252 26 Feb 01 1 U 0.00000 1 U GRG002 1126252 20 Mar 01 1 U 0.00000 1 U GRG002 176252 26 Apr 01 1 U 0.00000 1 U GRG002 256252 19 Jun 01 1 U 0.00000 1 U GYS004 466210 13 Nov 00 10 J 1.00000 14 J GYS004 496210 5 Dec 00 2 J 0.30103 1 J GYS004 1016210 2 Jan 01 2.5 0.39794 7 GYS004 1066210 6 Feb 01 42 1.62325 22 GYS004 1106210 5 Mar 01 3 0.47712 3 GYS004 1146210 2 Apr 01 4 0.60206 21 GYS004 186210 2 May 01 23 1.36173 46 J GYS004 236210 4 Jun 01 8 0.90309 41 GYS004 276210 2 Jul 01 1 0.00000 8.5 GYS008 466212 13 Nov 00 4 J 0.60206 5 J GYS008 496212 5 Dec 00 5 0.69897 9 GYS008 1016212 2 Jan 01 4 0.60206 7 J GYS008 1066212 6 Feb 01 7 0.84510 23 GYS008 1106212 5 Mar 01 1 U 0.00000 1 GYS008 1146212 2 Apr 01 1 0.00000 16 J GYS008 186212 2 May 01 7 0.84510 31 GYS008 236212 4 Jun 01 1 U 0.00000 3 GYS016 466214 13 Nov 00 1 U 0.00000 1 U GYS016 496214 5 Dec 00 1 U 0.00000 1 U HCB004 516266 19 Dec 00 1 U 0.00000 1 U HCB004 1046266 24 Jan 01 1 U 0.00000 1 U HCB004 1096266 27 Feb 01 1 U 0.00000 1 U HCB004 1126266 21 Mar 01 1 U 0.00000 1 U HCB004 1166266 17 Apr 01 1 U 0.00000 1 U HCB004 196266 8 May 01 1 U 0.00000 1 U HCB004 246266 12 Jun 01 1 UJ 0.00000 1 UJ NSQ002 506321 11 Dec 00 1 U 0.00000 1 U NSQ002 466321 14 Nov 00 1 U 0.00000 1 U OAK004 1046363 24 Jan 01 1 0.00000 5 OAK004 1096363 27 Feb 01 1 UJ 0.00000 1 UJ OAK004 1126363 21 Mar 01 8 0.90309 12 OAK004 1166363 17 Apr 01 1 0.00000 1 U OAK004 196363 8 May 01 1 U 0.00000 1 U OAK004 246363 12 Jun 01 1 0.00000 1 U PSB003 466309 14 Nov 00 1 U 0.00000 1 U PSB003 506309 11 Dec 00 2 0.30103 1 PSB003 1026309 8 Jan 01 3.5 0.54407 2 PSB003 1066309 5 Feb 01 6 0.77815 11 PSB003 166309 16 Apr 01 1 U 0.00000 1 U PSB003 196309 7 May 01 1 U 0.00000 1 U PSB003 286309 9 Jul 01 1 U 0.00000 1 U PSS019 516260 19 Dec 00 10.5 1.02119 6 PSS019 1046260 23 Jan 01 14 1.14613 2 PSS019 1096260 26 Feb 01 1 U 0.00000 1 U PSS019 1126260 20 Mar 01 1 U 0.00000 1 PSS019 176260 26 Apr 01 1 U 0.00000 1 U PSS019 256260 19 Jun 01 1 U 0.00000 1 U PTH005 466250 15 Nov 00 1 U 0.00000 1 U PTH005 1046250 23 Jan 01 1 U 0.00000 1 U PTH005 1096250 26 Feb 01 1 U 0.00000 1 U PTH005 1126250 20 Mar 01 1 U 0.00000 1 U PTH005 176250 26 Apr 01 1 U 0.00000 1 U PTH005 256250 19 Jun 01 1 U 0.00000 1 U QAMF1A 466222 13 Nov 00 1 U 0.00000 1 U QAMF1A 496222 5 Dec 00 1 U 0.00000 1 U QAMF2A 466269 15 Nov 00 1 0.00000 1 U QAMF3A 466327 14 Nov 00 2 0.30103 2 SAR003 1046257 23 Jan 01 1 U 0.00000 1 U SAR003 1096257 26 Feb 01 1 U 0.00000 1 U SAR003 1126257 20 Mar 01 1 U 0.00000 1 U SAR003 176257 26 Apr 01 1 U 0.00000 1 U SAR003 256257 19 Jun 01 1 U 0.00000 1 U SEQ002 466277 15 Nov 00 1 U 0.00000 1 U SIN001 516350 19 Dec 00 8 0.90309 1 SIN001 1046350 24 Jan 01 1 U 0.00000 1 SIN001 1126350 21 Mar 01 1 U 0.00000 1 U SIN001 166350 17 Apr 01 5 0.69897 1 U SIN001 196350 8 May 01 1 U 0.00000 1 U SIN001 246350 12 Jun 01 1 UJ 0.00000 1 UJ SIN001 1096350 27 Feb 01 1 U 0.00000 1 U WPA001 466220 13 Nov 00 6.5 0.81291 14.5 WPA001 496220 5 Dec 00 4 0.60206 7 WPA001 1016220 2 Jan 01 6 0.77815 4 WPA001 1066220 6 Feb 01 8 0.90309 12 WPA001 1106220 5 Mar 01 1 U 0.00000 1 WPA001 1146220 2 Apr 01 4.5 0.65321 16.5 WPA001 186220 2 May 01 35 1.54407 150 J WPA001 236220 4 Jun 01 2 0.30103 51 WPA001 276220 2 Jul 01 2 0.30103 11.5 WPA003 496225 5 Dec 00 3 0.47712 1 WPA003 1016225 2 Jan 01 1 U 0.00000 1 WPA003 1066225 6 Feb 01 3.5 0.54407 2 U WPA003 1106225 5 Mar 01 1 U 0.00000 2 WPA003 1106225 5 Mar 01 1 0.00000 1 U WPA003 186225 2 May 01 14.5 1.16137 67 WPA003 236225 4 Jun 01 1 U 0.00000 2.5 WPA004 466216 13 Nov 00 1 U 0.00000 1 U WPA004 496216 5 Dec 00 1 U 0.00000 1 U WPA006 466218 13 Nov 00 1 0.00000 1 U WPA006 496218 5 Dec 00 1 U 0.00000 1 WPA007 466229 13 Nov 00 1 U 0.00000 2 WPA007 496229 5 Dec 00 1 U 0.00000 1 U WPA008 466227 13 Nov 00 3 0.47712 3 WPA008 496227 5 Dec 00 3 0.47712 1 TOTALS 150 CHECK 150 Log Fecal Entero < 104 Fecal < 43 Entero < 104 & Fecal < 43 Entero < 104 & Fecal > 43 Entero > 104 & Fecal < 43 Entero > 104 & Fecal > 43 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.30103 1 1 1 0.47712 1 1 1 0.30103 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 1.23045 1 1 1 0.30103 1 1 1 1.17609 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 1.34242 1 1 1 1.23045 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.60206 1 1 1 0.00000 1 1 1 2.57978 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.69897 1 1 1 1.07918 1 1 1 0.69897 1 1 1 1.04139 1 1 1 0.00000 1 1 1 2.43136 1 0.77815 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 1.14613 1 1 1 0.00000 1 1 1 0.84510 1 1 1 1.34242 1 1 1 0.47712 1 1 1 1.32222 1 1 1 1.66276 1 1 1.61278 1 1 1 0.92942 1 1 1 0.69897 1 1 1 0.95424 1 1 1 0.84510 1 1 1 1.36173 1 1 1 0.00000 1 1 1 1.20412 1 1 1 1.49136 1 1 1 0.47712 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.69897 1 1 1 0.00000 1 1 1 1.07918 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.30103 1 1 1 1.04139 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.77815 1 1 1 0.30103 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.30103 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 1.16137 1 1 1 0.84510 1 1 1 0.60206 1 1 1 1.07918 1 1 1 0.00000 1 1 1 1.21748 1 1 1 2.17609 1 1 1.70757 1 1 1.06070 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.30103 1 1 1 0.30103 1 1 1 0.00000 1 1 1 1.82607 1 1 0.39794 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.00000 1 1 1 0.30103 1 1 1 0.00000 1 1 1 0.47712 1 1 1 0.00000 1 1 1 148 144 144 4 0 2 Seaplane Collected Data ( All Values Only)

0.00000 0.50000 1.00000 1.50000 2.00000 2.50000 3.00000 0.00000 0.50000 1.00000 1.50000 2.00000 2.50000 Log Fecal Coliform Log Enterococci N = 0 N = 2 N = 144 N = 4 Seaplane Collected Data ( All Values)

1.00000 1.50000 2.00000 2.50000 3.00000 Log Enterococci N = 0 N = 2 N = 4 N = 132 0.00000 0.50000 1.00000 0.00000 0.50000 1.00000 1.50000 2.00000 2.50000 Log Fecal Coliform L .50000 3.00000 50000 3.00000 Station Lat ( deg / min) Long ( deg / min) ADM001 48 01.8 122 37.0 ADM002 48 11.3 122 50.5 ADM003 47 52.8 122 28.9 BLL002 48 45.1 122 29.2 BLL003 48 44.7 122 29.6 BLL004 48 45.2 122 30.4 BLL006 48 44.1 122 30.1 BLL007 48 43.4 122 30.8 BLL008 48 42.8 122 31.8 BLL009 48 41.2 122 35.9 BLL010 48 38.3 122 34.7 BLL011 48 44.0 122 35.0 BML001 47 22.7 122 38.0 BUD001 47 02.9 122 54.3 BUD002 47 03.1 122 54.3 BUD003 47 03.6 122 54.4 BUD004 47 04.0 122 54.5 BUD005 47 05.5 122 55.0 CMB003 47 17.4 122 26.9 CMB006 47 15.7 122 26.2 CMB010 47 16.2 122 25.6 CMB012 47 14.5 122 23.9 CMB013 47 16.7 122 24.8 CMB016 47 16.7 122 23.6 CRR001 47 16.6 122 42.5 CSE001 47 15.9 122 50.6 CSE002 47 21.2 122 48.8 DIS001 48 01.1 122 50.8 DNA001 47 09.7 122 52.2 DRA001 48 58.0 123 45.7 DRA002 48 59.0 123 45.7 DUN001 48 10.4 123 06.8 DYE002 47 38.1 122 40.9 DYE003 47 35.2 122 39.0 DYE004 47 37.4 122 41.3 EAG001 47 37.3 122 31.3 EAP001 47 25.0 122 22.8 EAS001 48 38.6 122 52.9 ELB001 47 37.6 122 22.5 ELB002 47 36.7 122 21.0 ELB003 47 36.1 122 20.4 ELB004 47 35.4 122 20.6 ELB005 47 35.4 122 21.1 ELB006 47 35.4 122 21.5 ELB008 47 36.1 122 23.2 ELB009 47 34.3 122 21.2 ELB010 47 31.3 122 18.8 ELB012 47 30.1 122 17.3 ELB015 47 35.8 122 22.1 ELD001 47 06.4 122 56.9 ELD002 47 05.8 122 58.5 FID001 48 30.8 122 35.6 FRI001 48 32.3 123 00.7 FSH001 48 30.6 122 55.0 GOR001 47 11.0 122 38.0 GRG001 48 53.7 122 47.8 GRG002 48 48.5 122 57.2 GYS004 46 58.7 123 47.0 GYS006 46 57.4 123 50.5 GYS007 46 58.1 123 52.3 GYS008 46 56.3 123 54.7 GYS009 46 57.9 123 56.9 GYS014 46 55.5 124 07.0 GYS015 46 55.4 124 04.5 GYS016 46 57.2 124 05.5 HCB002 47 44.8 122 50.8 HCB003 47 32.3 123 00.5 HCB004 47 21.4 123 01.4 HCB006 47 44.9 122 43.8 HCB007 47 23.9 122 55.7 HCB008 47 45.2 122 44.7 HCB009 47 41.3 122 45.0 HCB010 47 26.2 123 7.0 HLM001 48 03.8 122 31.9 HND001 47 09.1 122 50.0 HRO001 48 44.1 123 02.4 JDF005 48 03.7 123 01.8 JDF007 48 02.9 123 00.5 LOP001 48 30.8 122 51.0 NRR001 47 19.0 122 32.9 NSQ001 47 06.8 122 41.8 NSQ002 47 10.1 122 47.2 OAK001 47 12.5 123 04.8 OAK004 47 12.8 123 04.6 PAD001 48 30.9 122 33.5 PAD002 48 30.7 122 35.7 PAD003 48 30.5 122 36.4 PAH003 48 08.1 123 27.6 PAH006 48 07.4 123 24.5 PAH007 48 07.2 123 24.3 PAH008 48 07.3 123 21.0 PCK001 47 14.9 122 55.4 PGA001 47 50.4 122 34.8 PMA001 47 44.1 122 32.0 PNN001 48 13.9 122 40.5 POD004 47 43.8 122 38.7 POD005 47 39.1 122 36.5 POD006 47 42.9 122 38.0 POD007 47 44.0 122 39.0 PSB002 47 34.6 122 25.4 PSB003 47 39.6 122 26.5 PSB006 47 39.6 122 22.5 PSB007 47 38.6 122 13.3 PSB008 47 38.9 122 20.9 PSS002 48 03.3 122 17.5 PSS005 47 58.6 122 13.6 PSS008 47 58.9 122 13.3 PSS009 47 59.1 122 13.2 PSS015 48 01.0 122 11.2 PSS016 47 59.0 122 10.1 PSS018 48 57.6 122 11.2 PSS019 48 00.7 122 18.0 PSS020 48 02.6 122 11.6 PTH002 48 05.5 122 47.5 PTH003 48 06.4 122 46.1 PTH005 48 05.0 122 45.8 QMH001 47 22.8 122 27.9 QMH002 47 23.8 122 26.5 SAM001 48 35.3 122 31.9 SAR002 48 16.0 122 33.3 SAR003 48 06.5 122 29.4 SEQ002 48 04.6 123 01.0 SIN001 47 33.0 122 38.5 SJF000 48 25.0 123 01.5 SJF001 48 20.0 123 01.5 SJF002 48 15.0 123 01.5 SJI001 48 33.0 122 59.3 SKG001 48 23.8 122 34.8 SKG002 48 17.9 122 30.0 SKG003 48 17.8 122 29.3 STL001 47 11.1 122 36.6 SUZ001 48 08.1 122 22.2 TOT001 47 09.9 122 57.8 TOT002 47 07.3 123 01.2 WPA001 46 41.3 123 44.9 WPA002 46 39.8 123 47.8 WPA003 46 42.3 123 50.2 WPA004 46 41.2 123 58.3 WPA005 46 32.3 123 58.9 WPA006 46 32.7 123 58.7 WPA007 46 27.2 124 00.5 WPA008 46 27.8 123 56.4


[Federal Register Volume 79, Number 202 (Monday, October 20, 2014)]
[Notices]
[Pages 62684-62688]
[FR Doc No: 2014-24779]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73343; File No. SR-OCC-2014-805]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of an Advance Notice Concerning Enhancements to the
Risk Management Framework Applied to the Clearance of Confirmed Trades
Executed in Extended and Overnight Trading Sessions

October 14, 2014.
    Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act entitled the Payment,
Clearing, and Settlement Supervision Act of 2010 \1\ (``Payment,
Clearing and Settlement Supervision Act'') and Rule 19b-4(n)(1)(i) \2\
of the Securities Exchange Act of 1934 notice is hereby given that on
September 17, 2014, The Options Clearing Corporation (``OCC'') filed
with the Securities and Exchange Commission (``Commission'') the
advance notice as described in Items I and II below, which Items have
been prepared by OCC. The Commission is publishing this notice to
solicit comments on the advance notice from interested persons.
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    \1\ 12 U.S.C. 5465(e)(1).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
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I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice

    This advance notice is filed by OCC in connection with a proposed
change to OCC's operations that is designed to enhance the risk
management framework applied to the clearance of confirmed trades
executed in extended and overnight trading sessions (hereinafter,
``overnight trading sessions'') offered by exchanges for which OCC
provides clearance and settlement services.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice

    In its filing with the Commission, OCC included statements
concerning the purpose of and basis for the advance notice and
discussed any comments it received on the advance notice. The text of
these statements may be examined at the places specified in Item IV
below. OCC has prepared summaries, set forth in sections (A) and (B)
below, of the most significant aspects of these statements.

(A) Clearing Agency's Statement on Comments on the Advance Notice
Received From Members, Participants or Others

    Written comments on the advance notice were not and are not
intended to be solicited with respect to the advance notice and none
have been received.

(B) Advance Notices Filed Pursuant to Section 806(e) of the Payment,
Clearing and Settlement Supervision Act

Description of Change
    This advance notice is being filed in connection with a proposed
change to OCC's operations to enhance the risk management framework
applied to the clearance of confirmed trades executed in overnight
trading sessions offered by exchanges for which OCC provides clearance
and settlement services. OCC currently clears overnight trading
activity for CBOE Futures Exchange, LLC (``CFE'').\3\ The total number
of trades submitted to OCC from overnight trading sessions is nominal,
typically less than 3,000 contracts per session. However, OCC has
recently observed an industry trend whereby exchanges are offering
overnight trading sessions beyond traditional hours. Exchanges offering
overnight trading sessions have indicated that such sessions benefit
market participants by providing additional price transparency and
hedging opportunities for products traded in such sessions, which, in
turn, promotes market stability.\4\
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    \3\ ELX Futures LP (``ELX'') previously submitted overnight
trading activity to OCC, but currently does not submit trades from
overnight trading sessions to OCC. OCC will re-evaluate ELX's risk
controls in the event ELX re-institutes its overnight trading
sessions.
    \4\ See CFE-2014-010 at http://cfe.cboe.com/publish/CFErulefilings/SR-CFE-2014-010.pdf .
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    OCC recently has re-evaluated the risks associated with providing
clearing services for overnight trading sessions and, based on such
review, is proposing to enhance its risk management framework for
clearing overnight trading activity by incorporating a procedure to
confirm that the relevant exchanges have implemented certain applicable
pre-trade risk controls, complemented by kill-switch capabilities, and
minimum exchange operational staffing requirements during overnight
trading sessions.\5\ OCC also is proposing to implement enhanced
monitoring and credit risk controls as well as imposing minimum
operational staffing requirements on clearing members that participate
in such sessions. These changes (described in greater detail below) are
designed to reduce and mitigate the risks associated with clearing
trades executed in overnight trading sessions.
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    \5\ The Chicago Board Options Exchange, Incorporated (``CBOE'')
has approached OCC to provide clearance services for a proposed
overnight trading session from 2:00 a.m. to 8:15 a.m. (Central Time)
Monday through Friday (``Extended Trading Hours''). CBOE initially
plans to list VIX and SPX options during Extended Trading Hours.
---------------------------------------------------------------------------

    OCC's standards for determining whether to provide clearing
services for overnight trading sessions offered by an exchange and
enhanced risk management framework are designed to work in conjunction
with the risk controls of the exchanges that allow overnight trading
sessions. OCC will confirm an exchange's risk controls as well as its
staffing levels as they relate to overnight trading sessions to
determine if OCC may reasonably rely on such risk controls to reduce
risk presented to OCC by the exchange's overnight trading sessions.
Such exchange risk controls may consist of: (1) Price reasonability
checks, (2) controls to prevent orders from being executed beyond a
certain percentage (determined by the exchange) from the initial
execution price, (3) activity based protections such as a maximum
quantity per order and the ability to cancel all quotes when a
threshold of contracts are traded in an individual option during a
brief window, and (4) kill switch capabilities, which may be initiated
by the exchange and can cancel all open quotes or all orders of a
particular participant. OCC believes that confirming the existence of
applicable pre-trade risk controls as well as overnight staffing at the
relevant exchanges is essential to mitigating risks presented to OCC
from overnight trading sessions.\6\ Providing clearing services to
exchanges offering such sessions is consistent with OCC's mission to
provide market participants with clearing and risk management solutions
that respond to changes in the marketplace. Cleared contract volume
also may increase as a result of providing such services.
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    \6\ Comparable controls are applied to futures and future option
trades executed in overnight trading sessions currently cleared by
OCC, although such controls have been implemented by clearing
futures commission merchants (``clearing FCMs'') pursuant to
Commodity Futures Trading Commission (``CFTC'') Regulation 1.73,
which also requires such clearing FCMs to monitor for adherence to
such controls during regular and overnight trading sessions. OCC
believes that it may reasonably rely on such regulation to reduce
risk presented to OCC during futures markets overnight trading
sessions. See 17 CFR 1.73. OCC also confirmed CFE maintains kill
switch capabilities.
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Enhanced Risk and Operational Controls at OCC
    In order to mitigate the risks associated with the clearance of
transactions executed during overnight trading sessions, and to promote
robust risk management, OCC proposes to implement enhancements to its
risk management framework specific to overnight trading sessions. The
enhanced risk management framework will include post-trade credit
controls that have been designed to identify and mitigate credit risk
associated with clearing trades executed during overnight trading
sessions as well as requiring clearing members that participate in
overnight trading sessions to have operational staff available to OCC
during overnight trading sessions.
1. Overnight Monitoring and Credit Controls
    OCC plans to implement overnight monitoring and credit controls in
order to better monitor clearing members' credit risk during overnight
trading sessions. Such monitoring of credit risk is similar to existing
OCC practices concerning futures cleared during overnight trading hours
and includes automated processes within ENCORE to measure, by clearing
member: (i) the aggregate mark-to-market amounts of a clearing member's
positions, including positions created during overnight trading, based
on current prices using OCC's Portfolio Revaluation system, (ii) the
aggregate incremental margin produced by all positions resulting from
transactions executed during overnight trading, and (iii) with respect
to options cleared during overnight trading hours, the aggregate net
trade premium positions resulting from trades executed during overnight
trading (each of these measures being a ``Credit Risk Number''). ENCORE
will generate hourly credit reports, which will contain the Credit Risk
Numbers expressed in terms of both dollars and, except for the mark-to-
market position values, as a percentage of net capital for each
clearing member trading during overnight trading sessions. The Credit
Risk Numbers are the same information

used by OCC staff to evaluate clearing member exposure during regular
trading hours and, in addition to OCC's knowledge of its clearing
members' businesses, are effective measures of the risk presented to
OCC by each clearing member. OCC's Operations staff will review such
reports as they are generated and, in the event that any of the Credit
Risk Numbers for positions established by a clearing member during an
overnight trading session exceeds established thresholds, staff will
alert OCC's Financial Risk Management staff \7\ of the exceedance in
accordance with established procedures, as described below. Financial
Risk Management staff will follow a standardized process concerning
such exceedances, including escalation to OCC's management, if required
by such process. Given the nominal volume of trades executed in
overnight trading sessions that are presently submitted for clearance,
no changes in current staffing levels that support overnight clearing
activities is contemplated at this time. However, such staffing levels
will be periodically assessed and adjusted, as appropriate.
---------------------------------------------------------------------------

    \7\ OCC's Member Services staff will also receive alerts in
order to contact clearing members as may be necessary.
---------------------------------------------------------------------------

    With respect to OCC's escalation thresholds, if any Credit Risk
Number of a clearing member is $10 million or more, or any Credit Risk
Number equals 10% or more of the clearing member's net capital, OCC's
Operations staff will be required to provide email notification to
Financial Risk Management. If any Credit Risk Number is $50 million or
more, or equals 25% or more of the clearing member's net capital,
Operations staff will be required to contact, by telephone: (i)
Financial Risk Management staff, (ii) the applicable exchange for
secondary review, and (iii) the clearing member's designated contacts.
If any Credit Risk Number is $75 million or more, or equals 50% or more
of the clearing member's net capital, Operations staff will be required
to contact, by telephone, a designated Senior Vice President or the
Chief Risk Officer. Such officer will review the situation and
determine whether to issue an intra-day margin call, increase a
clearing member's margin requirement in order to prevent the withdrawal
of a specified amount of excess margin collateral, if any, the clearing
member has on deposit with OCC, whether further escalation is warranted
in order for OCC to take protective measures pursuant to OCC Rule 305,
as described below or contact the exchange in order to invoke use of
its kill switch. OCC chose the above described escalation thresholds
based on its analysis of historical overnight trading activity across
the futures industry. OCC believes that these thresholds strike an
appropriate balance between effective risk monitoring and operational
efficiency.
2. Operational/Staffing Requirements
    In order to mitigate operational risks associated with clearing for
overnight trading sessions, clearing members that participate in such
trading sessions will be required to provide contact information to OCC
for operational personnel available to be contacted by OCC during such
sessions. Under OCC Rule 201, each clearing member is required to
maintain facilities for conducting business with OCC, and a
representative of the clearing member authorized in the name of the
clearing member to take all action necessary for conducting business
with OCC is required to be available at the facility during such hours
as may be specified from time-to-time by OCC. Similarly, OCC Rules
214(c) and (d) require clearing members to ensure that they have the
appropriate number of qualified personnel and to maintain the ability
to process anticipated volumes and values of transactions. OCC will use
this existing authority to require clearing members trading during
overnight trading sessions to maintain operational staff that may be
contacted by OCC during such sessions. Each morning, shortly after the
end of the overnight trading sessions, ENCORE will generate a report
identifying clearing members that participated during that day's
overnight trading sessions that have not provided OCC with overnight
operational contacts. Clearing members who participated during
overnight trading sessions that did not provide operational contacts to
OCC, or whose operational contacts for overnight trading sessions were
unavailable had OCC attempted to contact such individuals, will be
subject to a minor rule violation fine.\8\ OCC believes that, by having
clearing member operational contacts available during overnight trading
hours, operational issues that may arise during such trading hours can
quickly be resolved thereby lowering the operational risk presented to
OCC by clearing trades executed in overnight trading sessions.
---------------------------------------------------------------------------

    \8\ See OCC Rule 1201(b).
---------------------------------------------------------------------------

Existing Risk Controls as They Relate to Overnight Trading Hours
    In addition to implementing enhanced risk management practices
specific to clearing trades executed in overnight trading sessions, OCC
will apply, and in certain instances modify, existing (or planned) risk
management controls to mitigate risks presented by clearance
activities, including OCC's ability to issue an intra-day margin call,
OCC's performance of a post-trade price reasonableness check and
exercising OCC's authority to take protective action pursuant to OCC
Rule 305. These controls, as they relate to clearing trades executed in
such sessions, are discussed below.
1. Intra-day Margin Call Authority
    In order to address credit risk associated with trading during
overnight trading sessions, OCC staff will monitor and analyze the
impact that positions established during such sessions have on a
clearing member's overall exposure. Should the need arise, and pursuant
to OCC Rule 609, OCC may require the deposit of additional margin
(``intra-day margin'') by any clearing member that increases its
incremental risk as a result of trading activity during overnight
trading sessions. Accordingly, a clearing member's positions
established during such sessions will be incorporated into OCC's intra-
day margin process. Should a clearing member's exposure significantly
increase while settlement banks are not open to process an intra-day
margin call, OCC has the authority under OCC Rule 601 to increase a
clearing member's margin requirement which would restrict its ability
to withdraw excess margin collateral. The implementation of these
measures is discussed more fully below.
    In the event that a clearing member's exposure during overnight
trading sessions causes a clearing member to exceed OCC's intra-day
margin call threshold for overnight night trading sessions, OCC will
require the clearing member to deposit intra-day margin equal to the
increased incremental risk presented by the clearing member.
Specifically, if a clearing member has a total risk charge \9\
exceeding 25% (a reduction of the usual figure of 50%), as computed
overnight by OCC's STANS system, and a loss of greater than $25,000
from an overnight trading session(s), as computed by Portfolio

Revaluation, OCC will initiate an intra-day margin call. OCC will know
at approximately 8:30 a.m. if it will need to initiate an intra-day
margin call on a clearing member based on breaches of these thresholds.
This ``start of business'' margin call is in addition to daily margin
OCC collects from clearing members pursuant to OCC Rule 605, any intra-
day margin call that OCC may initiate as a result of regular trading
sessions or special margin call that OCC may initiate.
---------------------------------------------------------------------------

    \9\ Total risk charge is a number derived from STANS outputs and
is the sum of expected shortfall, stress test charges and any add-on
charges computed by STANS. STANS is OCC's proprietary margin
methodology.
---------------------------------------------------------------------------

    In addition to, or instead of, requiring additional intra-day
margin, OCC Rule 601\10\ and OCC's clearing member margin call policy
work together to authorize Financial Risk Management staff to increase
a clearing member's margin requirement which may be in an amount equal
to an intra-day margin call.\11\ (Any increased margin requirement will
remain in effect until the next business day.) This action will
immediately prevent clearing members from withdrawing any excess margin
collateral (in the amount of the increased margin requirement) the
clearing member has deposited with OCC. With respect to clearing trades
executed in overnight trading sessions, and in the event OCC requires
additional margin from a clearing member, Financial Risk Management
staff may use increased margin requirements as a means of
collateralizing the increase in incremental risk a clearing member
incurred during such sessions without having to wait for banks to open
to process an intra-day margin call.\12\ Such action may be taken by
OCC instead of or in addition to issuing an intra-day margin call
depending on the amount of excess margin a clearing member has on
deposit with OCC and the amount of the incremental risk presented by
such clearing member. The expansion of OCC's intra-day margin call
process as described in the preceding paragraph, including OCC's
ability to manually increase clearing members' margin requirements,
will mitigate the risk that OCC is under-collateralized as a result of
overnight trading hours.
---------------------------------------------------------------------------

    \10\ In addition, OCC Rule 601 provides OCC with the authority
to fix the margin requirement for any account or any class of
cleared contracts at such amount as it deems necessary or
appropriate under the circumstances to protect the respective
interests of clearing members, OCC and the public.
    \11\ Clearing members frequently deposit margin at OCC in excess
of requirements.
    \12\ Clearing members would be able to substitute the locked-up
collateral during normal time frames (i.e., 6 a.m. to 5 p.m.
(Central Time) for equity securities).
---------------------------------------------------------------------------

2. Post-Trade Price Reasonableness
    In a separate pending rule filing, OCC has proposed to add an
interpretation and policy concerning its administration of Article VI,
Section 7(c) of its By-Laws and to implement price reasonableness
checks in connection with the reporting of confirmed trades in
standardized options and futures options to OCC by an exchange under
Article VI, Section 7.\13\ The new Interpretation and Policy to Article
VI, Section 7(c) will allow OCC to review the reasonableness of prices
for options transactions reported as confirmed trades and ask reporting
exchanges to consider whether new or revised trade information is
required to properly clear the transaction.\14\ To promote OCC's
ability to protect itself and clearing members from the negative
effects of clearing trades in options that may contain erroneous
premium information, OCC will apply a premium price threshold to
accepted trades that will trigger further scrutiny of certain trades
that exceed the threshold. This premium price threshold will apply to
trades occurring during overnight trading sessions, upon regulatory
approval, and thus will increase OCC's ability to monitor and mitigate
risk arising from clearing trades executed during such trading
sessions.
---------------------------------------------------------------------------

    \13\ Exchange Act Release No. 32718 (July 30, 2014), 79 FR 45527
(August 5, 2014) (SR-OCC-2014-16). This filing, as amended, is
pending regulatory approval.
    \14\ See Article VI, Section 7(c); see also Exchange Act Release
No. 46734 (October 28, 2002), 67 FR 67229 (November 4, 2002) (SR-
OCC-2002-18) (approving amendments to OCC's By-Laws and Rules
supporting the transition to near real-time reporting of matched
trade information, including amendments to Article VI, Section 7 to
allow instructions to OCC under certain conditions to disregard a
matched trade).
---------------------------------------------------------------------------

3. Protective Action Pursuant to OCC Rule 305
    Pursuant to OCC Rule 305, the Executive Chairman or the President
of OCC, in certain situations, has the authority to impose limitations
and restrictions on the transactions, positions and activities of a
clearing member. This authority will be used, as needed, in the event a
clearing member accumulates significant credit risk during overnight
trading sessions, or a clearing member's activities during such trading
sessions otherwise warrant OCC taking protective action.
Anticipated Effect on and Management of Risk
    Clearing transactions executed in overnight trading sessions may
increase risk presented to OCC due to the period of time between trade
acceptance and settlement, the staffing levels at clearing members
during such trading sessions and the deferment of executing intra-day
margin calls until banking settlement services are operational.
However, OCC will expand its risk management practices in order to
mitigate these risks by implementing, and expanding, the various tools
discussed above. For example, OCC will modify its existing risk
management practices in order to closely monitor clearing members'
credit risk from trades placed during overnight trading sessions as
well as implement processes so that OCC takes appropriate action when
such credit risk exceeds certain limits. OCC will also use its existing
authority to require adequate clearing member staffing during such
trading sessions, which will mitigate the operational risk associated
with clearing members trading while they are not fully staffed. These
risk management functions will work in tandem with risk controls,
including the implementation of kill switch capabilities, adopted by
the exchanges operating overnight trading sessions or by clearing FCMs,
as applicable.
    In addition to the above, OCC will adapt existing processes so that
such processes can be used to mitigate risk associated with overnight
trading sessions. Specifically, OCC will have the ability to issue
margin calls, and prevent the withdrawal of excess margin on deposit at
OCC, as a result of activity during such trading sessions as a means of
reducing risk. OCC also will apply, pending regulatory approval, a
post-trade price reasonability check to trades reported during
overnight trading sessions, and therefore mitigate the risk of losses
from erroneous trades. Finally, OCC will be able to take protective
action pursuant to OCC Rule 305 as a result of clearing member activity
during such sessions.
Consistency with the Payment, Clearing and Settlement Supervision Act
    OCC believes that the proposed change is consistent with Section
805(b) of the Payment, Clearing and Settlement Supervision Act \15\
because the proposed change will promote robust risk management.\16\
OCC believes that the proposed enhancements to its risk management
functions will provide OCC with the tools necessary to mitigate risks
that may occur as a result of overnight trading sessions. As described
above, OCC will implement new risk monitoring processes designed to
identify increases in credit risk

presented to OCC as a result of such sessions as well as implement
changes designed to mitigate operational risk associated with overnight
trading sessions. In addition, OCC will adapt certain existing
practices to accommodate these overnight trading sessions including its
margin call process and its authority to take protective action
pursuant to OCC Rule 305. The new and modified practices are designed
to identify and mitigate risks that may be presented to OCC as a result
of overnight trading sessions and thereby promote robust risk
management.
---------------------------------------------------------------------------

    \15\ 12 U.S.C. 5464(b).
    \16\ 12 U.S.C. 5464(b)(1).
---------------------------------------------------------------------------

III. Date of Effectiveness of the Advance Notice and Timing for
Commission Action

    The proposed change may be implemented if the Commission does not
object to the proposed change within 60 days of the later of (i) the
date that the Commission receives the notice of proposed change, or
(ii) the date the Commission receives any further information it
requests for consideration of the notice. The clearing agency shall not
implement the proposed change if the Commission has any objection to
the proposed change.
    The Commission may extend the period for review by an additional 60
days if the proposed change raises novel or complex issues, subject to
the Commission providing the clearing agency with prompt written notice
of the extension. A proposed change may be implemented in less than 60
days from the date the advance noticed is filed, or the date further
information requested by the Commission is received, if the Commission
notifies the clearing agency in writing that it does not objected to
the proposed change and authorizes the clearing agency to implement the
proposed change on an earlier date, subject to any conditions imposed
by the Commission.
    The clearing agency shall post notice on its Web site of proposed
changes that are implemented.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing. 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_ADDRESS>Please include
File Number SR-OCC-2014-805 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-OCC-2014-805. 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 advance notice that are filed
with the Commission, and all written communications relating to the
advance notice 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 OCC and on OCC's Web site http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_14_805.pdf.
    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-OCC-2014-805
and should be submitted on or before November 10, 2014.

    By the Commission.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-24779 Filed 10-17-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 3 (Wednesday, January 6, 2016)]
[Notices]
[Pages 549-550]
[FR Doc No: 2015-33220]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76800; File No. SR-Phlx-2015-114]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 1060

December 30, 2015.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 21, 2015, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the 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 the
Substance of the Proposed Rule Change

    The Exchange proposes to update Phlx Rule 1060, as described
further below. The text of the proposed rule change is below; proposed
deletions are in brackets.
* * * * *

Rule 1060. Floor Broker Defined

    An Options Floor Broker is an individual who is registered with the
Exchange for the purpose, while on the Options Floor, of accepting and
handling options orders [received from members and member
organizations. An Options Floor Broker shall not accept an order from
any other source unless he is the nominee of a member organization
qualified to transact business with the public in which event he may
accept orders from public customers of the organization].
* * * * *

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 purpose of the proposal is to update Phlx Rule 1060, Floor
Broker Defined, which is incorrect in a number of ways. Other than the
implementation of the Exchange's Options Floor Broker Management
System,\3\ the rule has not been updated since its adoption in 1984.
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 69471 (April 29, 2013),
78 FR 26096 (May 3, 2013) (SR-Phlx-2013-09).
---------------------------------------------------------------------------

    Currently, the rule provides that Floor Brokers are registered as
such for the purpose of accepting and handling options orders received
from members and member organizations.\4\ In actuality, Floor Brokers
have long been accepting orders from non-members/member organizations.
Specifically, Floor Brokers accept orders from broker-dealers who are
not Phlx members or member organizations; they have long done so.\5\ No
additional rules apply as a result of accepting orders from non-member
broker-dealers.
---------------------------------------------------------------------------

    \4\ See Rules 1(n) and (o).
    \5\ CBOE Floor Brokers are similarly permitted to accept orders
from non-member broker-dealers. See CBOE Rule 6.70.
---------------------------------------------------------------------------

    In addition, Floor Brokers accept orders from non-broker-dealer
customers (meaning, the public). In order to do so, Floor Brokers must
be properly qualified to do business with the public.\6\ These
qualification requirements apply to all members and member
organizations that do business with the public, including Floor
Brokers, and will continue to do so under the amended rule. In
addition, in order to do business with the public, Floor Brokers must
abide by the Phlx rules pertaining to handling of customer orders,
including fidelity bond coverage,\7\ annual audits,\8\ approval of the
opening of accounts,\9\ supervision of accounts \10\ and communications
to customers.\11\
---------------------------------------------------------------------------

    \6\ See e.g., Rules 613, 620 and 1024(a).
    \7\ See Rule 705.
    \8\ See Rule 712.
    \9\ See Rule 1024(b).
    \10\ See Rule 1025.
    \11\ See Rule 1049.
---------------------------------------------------------------------------

    The Exchange does not believe it is necessary to list in Rule 1060
from what type of market participant a Floor Broker may receive orders,
because a Floor Broker can accept orders from any type of market
participant. It would be superfluous to add such a list. The rules
applicable to doing business with the public apply to Floor Brokers and
their member organization regardless of whether such rules are
specifically listed in Rule 1060.
    Rule 1060 also provides that an Options Floor Broker shall not
accept an order from any other source unless the Floor Broker is the
nominee of a member organization qualified to transact business with
the public in which event the Floor Broker may accept orders from
public customers of the organization. The Exchange believes that this
provision is incorrect in a number of respects. The term ``nominee'' is
no longer used, except with reference to inactive nominees, which is a
separate status, unrelated to defining a Floor Broker.\12\ Prior to
2004, the Exchange had a different ownership and membership structure,
such that the term ``nominee'' was sometimes used. Specifically, a
nominee of a member organization was, in essence, a member.
---------------------------------------------------------------------------

    \12\ See Rules 1(l) and 925.
---------------------------------------------------------------------------

    Furthermore, the Floor Broker, not just his member organization,
must be qualified to accept orders from the public.\13\ In addition, a
Floor Broker's ability to accept orders from the public is not limited
to accepting orders from public customers of the Floor Broker's member
organization. As explained above, a Floor Broker may accept orders from
the public provided the Floor Broker is properly qualified to do so and
abides by the rules pertaining to handling of such orders.\14\
---------------------------------------------------------------------------

    \13\ See Rule 613.
    \14\ See supra notes 5-10.
---------------------------------------------------------------------------

    Accordingly, the Exchange is deleting the last sentence of Rule
1060.
    In sum, the updated rule will continue to state that an Options
Floor

Broker is an individual who is registered with the Exchange for the
purpose, while on the Options Floor, of accepting and handling options
orders. Overall, the Exchange notes that the current language in Rule
1060 was adopted at a time when the options market structure and
trading floor community were very different than today. Long ago, there
were only a handful of options exchanges, all of which operated trading
floors. With the advent of additional exchanges and electronic trading,
membership in every options exchange was no longer critical or
practical. Many large firms maintained a floor presence in the form of
their own ``house'' Floor Brokers. This has changed dramatically, in
that most Floor Brokers now work for member organizations that are
solely in the floor brokerage business and not affiliated with large
firms that operate trading desks or receive order flow. Because the
dynamics have changed so much and the floor brokerage business has
evolved accordingly, the Exchange believes that the limitations
contained in Rule 1060 no longer make sense.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with section
6(b) of the Act \15\ in general, and furthers the objectives of section
6(b)(5) of the Act \16\ in particular, in that it is designed to
promote just and equitable principles of trade and to protect investors
and the public interest, by correctly identifying what functions a
Floor Broker can perform in terms of order acceptance. In its current
form, Rule 1060 can be read too narrowly, which would result in a Floor
Broker not being permitted to accept orders other than from members and
member organizations. Other Phlx members and member organizations are
not limited with respect to the participants from whom orders can be
accepted, and, thus, the proposal levels the playing field for options
Floor Brokers. Persons submitting orders for execution by a Floor
Broker on the Exchange would not expect that Exchange membership would
be required to do so. Thus, the Exchange believes that updating the
rule will help prevent confusion and help ensure that floor brokerage
services are widely available to various types of market participants,
which should, in turn, promote just and equitable principles of trade.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 not necessary or appropriate in
furtherance of the purposes of the Act. With respect to inter-market
competition, the Exchange does not believe that the proposed revisions
will impose any burden on competition, because at least one other
Exchange has a similar rule governing the types of orders a floor
broker can submit.\17\ With respect to intra-market competition, the
proposal applies to all Phlx Floor Brokers.
---------------------------------------------------------------------------

    \17\ CBOE Rule 6.70.
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or 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 from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to section 19(b)(3)(A)(iii) of the Act \18\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\19\
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(3)(a)(iii).
    \19\ 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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2015-114 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-Phlx-2015-114. 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 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-Phlx-2015-114, and should be
submitted on or before January 27, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-33220 Filed 1-5-16; 8:45 am]
 BILLING CODE 8011-01-P