Weekly Roundup of Exchange Rule Changes (by Category); Of Note: NSX Seeks to Cease Trading Activity as of May 30, 2014 (with Fitzgerald Comment)

New SRO rules and rule proposals were announced by the SEC.

The National Stock Exchange ("NSX") requested permission to cease trading activity as of the close of business on May 30, 2014 ("Closing Date"). The applicable rule filing does not propose any changes to NSX's ownership structure, nor does it alter NSX's self-regulatory organization ("SRO") responsibilities at this time. In this regard, NSX Rules will remain in effect through and following the Closing Date, and NSX will retain disciplinary jurisdiction over all of its Equity Trading Permit Holders for the foreseeable future. NSX will likewise necessarily maintain adequate funding until it fully discharges all of its SRO obligations.

Independent Consultant Shannon Fitzgerald Comment: NSX is reportedly soliciting other exchanges to fund it or to purchase its business operations. Should NSX seek to resume business at any point following the Closing Date, either via an infusion of capital or as a result of an acquisition, NSX will be required to file another proposed rule change requesting the resumption of trading activities on the exchange.

Click on the links below to view the SEC's notices of exchange rule changes and proposals for the week of May 5 - May 9:

Clearance Settlement

• ICC: Proposed Rule Change to Update ICC's Policy Regarding Valuation of Maturing U.S. Treasury Securities and Update ICC's Collateral Asset Haircut Methodology
• ICC: Proposed Rule Change to Provide for the Clearance of Additional Non-Investment Grade Instruments on Standard North American Corporate Single Name Reference Entities

Fees

• BATS: Effective Immediately - Rule Change to Related to Fees for Use of BATS Exchange, Inc. (see also Exhibit 5)
• BYX: Effective Immediately - Rule Change to Related to Fees for Use of BATS Y-Exchange, Inc. (see also Exhibit 5)
• EDGA: Effective Immediately - Rule Change Relating to Amendments to the EDGA Exchange, Inc. Fee Schedule (see also Exhibit 5)
• EDGX: Effective Immediately - Rule Change Relating to Amendments to the EDGX Exchange, Inc. Fee Schedule (see also Exhibit 5)
• NASDAQ: Effective Immediately - Rule Change to Modify Fees Set Forth in Rule 7015(e) Governing WebLink ACT and the ACT Workstation
• NSX: Effective Immediately - Rule Change to Amend its Fee and Rebate Schedule to Change Certain Fees Applicable to Liquidity Providers, Eliminate a Rebate and Adopt a Fee for Removing Liquidity, and Reducing a Fee for Routed Orders, All With Respect to Securities Priced at $1.00 or Greater (see also Exhibit 5)
• NYSE: Effective Immediately - Rule Change Amending its Price List, Effective May 2, 2014, to Set Forth a Fee for a Bond Trading License under Rule 87 and a Rebate for Bond Liquidity Providers that Bring Liquidity to the Exchange's Bond Market in Accordance with Rule 88 and to Delete an Obsolete Fee (see also Exhibit 5)
• Phlx: Effective Immediately - Rule Change Relating to Mini Options Pricing (see also Exhibit 5)
• Phlx: Effective Immediately - Rule Change Relating to JBO Orders (see also Exhibit 5)

Governance

• NASDAQ: Effective Immediately - Rule Change Relating to Mini Options (see also Exhibit 5)
• NASDAQ OMX BX: Effective Immediately - Rule Change by NASDAQ OMX BX, Inc. Relating to Mini Options (see also Exhibit 5)
• NSCC: No Objection to Advance Notice to Renew NSCC's Existing Credit Facility
• NSX: Effective Immediately - Rule Change to Cease Trading on Its Trading System (see also Exhibit 5)
• NYSE Arca: Effective Immediately - Rule Change Amending Commentary .01 to Rule 6.3. to Replace the Reference to "GOOG" with "GOOGL" (see also Exhibit 5)
• OCC: Notice of Withdrawal of an Advance Notice in Connection With a Proposed Change to its Operations in the Form of a Private Offering by OCC of Senior Unsecured Debt Securities
• Phlx: Effective Immediately - Rule Change Relating to Mini Options (see also Exhibit 5)

Licensing Registration

• C2: Effective Immediately - Rule Change Relating to Qualification and Registration Requirements of Permit Holders and Associated Persons of Permit Holders (see also Exhibit 5)

Margin Liquidity Requirements

• CBOE: Proposed Rule Change to Amend Certain Margin Rules for Volatility Index Options
• ICC: Rule Change to Update ICC's Liquidity Thresholds for Euro Denominated Products

Products

• BATS: Order Granting Approval of a Proposed Rule Change to List and Trade Shares of Certain Funds of the ProShares Trust
• NASDAQ: Proposed Rule Change Relating to the Listing and Trading of the Shares of the Calamos Focus Growth ETF of the Calamos ETF Trust

Trading Quotation

• CBOE: Effective Immediately - Rule Change Relating to the Availability of Certain Delayed Market Data on CBOE Websites
• CME: Effective Immediately - Rule Changes Making Changes in the Position Limits and Accountability Levels of CME Cleared OTC FX Spot, Forward and Swap Contracts
• EDGA: Effective Immediately - Rule Change to Amend EDGA Rule 11.5 Regarding the Route Peg Order (see also Exhibit 5)
• EDGX: Effective Immediately - Rule Change to Amend EDGX Rule 11.5 Regarding the Route Peg Order (see also Exhibit 5)
• EDGX: Designation of Longer Period for Commission Action on Proposed Rule Change to Adopt a New Order Type Called the Mid-Point Discretionary Order
• ISE: Proposed Rule Change, as Modified by Amendment No. 2, Regarding the Short Term Option Series Program (see also Exhibit 5)
• ISE: Longer Period for Commission Action on Proposed Rule Change Related to Market Maker Risk Parameters
• ISE: Effective Immediately - Rule Change to the Quarterly Options Series Program (see also Exhibit 5)
• ISE Gemini: Longer Period for Commission Action on Proposed Rule Change Related to Market Maker Risk Parameters
• Phlx: Proposed Rule Change Related to the Priority Afforded to In-Crowd Participants Respecting Crossing, Facilitation and Solicited Orders in Open Outcry Trading (see also Exhibit 5)
• NYSE Arca: Effective Immediately - Rule Change Amending Rule 6.91 to Adopt Rules Governing an Opening Auction Process for Electronic Complex Orders and to Amend and Reorganize Existing Rules Specifying Available Electronic Complex Order types and Modifiers (see also Exhibit 5)
• NYSE Arca: Filing of Amendment No. 1 and Order Instituting Proceedings to Determine Whether to Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, to Amend NYSE Arca, Inc.'s Rules by Revising the Order of Priority of Bids and Offers When Executing Orders in Open Outcry
• NYSE MKT: Effective Immediately - Rule Change Amending Rule 980NY to Adopt Rules Governing an Opening Auction Process for Electronic Complex Orders and to Amend and Reorganize Existing Rules Specifying Available Electronic Complex Order Types and Modifiers (see also Exhibit 5)

See also: Weekly Roundup of Exchange Rule Changes (by Category) (May 2, 2014).For more information, please contact Shannon Fitzgerald, an independent consultant, or Steve Lofchie.