Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change To Provide for the Clearance of an Additional Standard Emerging Market Sovereign Single Name, 20280-20282 [2015-08543]
Download as PDF
<![CDATA[
20280
Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICC–2015–007 on the subject line.
Paper Comments
tkelley on DSK3SPTVN1PROD with NOTICES
• 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–ICC–2015–007. 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 (https://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
filings will also be available for
inspection and copying at the principal
office of ICE Clear Credit and on ICE
Clear Credit’s Web site at https://
www.theice.com/clear-credit/regulation.
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–ICC–2015–007 and should
be submitted on or before May 6, 2015.
13 17
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Brent J. Fields,
Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[FR Doc. 2015–08542 Filed 4–14–15; 8:45 am]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing of
Proposed Rule Change To Provide for
the Clearance of an Additional
Standard Emerging Market Sovereign
Single Name
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
April 9, 2015.
[Release No. 34–74642A; File No. SR–
NYSE–2014–59]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Withdrawal of a Proposed Rule
Change, as Modified by Partial
Amendment No. 1, Amending Rule 13
and Related Rules Governing Order
Types and Modifiers; Correction
April 9, 2015.
Securities and Exchange
Commission.
AGENCY:
ACTION:
Notice; correction.
The Securities and Exchange
Commission published a document in
the Federal Register on April 9, 2015,
concerning a Notice of Withdrawal of a
Proposed Rule Change, as Modified by
Partial Amendment No. 1, Amending
Rule 13 and Related Rules Governing
Order Types and Modifiers. The
document contained a typographical
error.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Steve Kuan, Division of Trading and
Markets, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549, (202) 551–5624.
Correction
In the Federal Register of April 9,
2015 in FR Doc. 2015–8107, on page
19097, in the fourth line in the first
column, correct the date ‘‘February 26,
2014’’ to ‘‘February 26, 2015.’’
Dated: April 9, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015–08628 Filed 4–14–15; 8:45 am]
BILLING CODE 8011–01–P
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:29 Apr 14, 2015
Jkt 235001
[Release No. 34–74688; File No. SR–ICC–
2015–006]
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
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 March 27,
2015, ICE Clear Credit LLC (‘‘ICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared primarily by ICC.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to adopt rules that will
provide the basis for ICC to clear an
additional credit default swap contract.
Specifically, ICC is proposing to amend
Subchapter 26D of its rules to provide
for the clearance of an additional
Standard Emerging Market Sovereign
CDS contract (‘‘SES Contract’’), namely
Ukraine.
ICC has been approved to clear twelve
SES Contracts: The Federative Republic
of Brazil, the United Mexican States, the
Bolivarian Republic of Venezuela, the
Argentine Republic, the Republic of
Turkey, the Russian Federation, the
Republic of Hungary, the Republic of
South Africa, the Republic of Chile, the
Republic of Peru, the Republic of
Colombia, and the Republic of Poland.3
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 34–
65588 (Oct. 18, 2011), 76 FR 65763 (Oct. 24, 2011)
(File No. SR–ICC–2011–01) (order approving rule
change to clear SES Contracts referencing the
Federative Republic of Brazil, the United Mexican
States, the Bolivian Republic of Venezuela, and the
Argentine Republic); Securities Exchange Act
Release No. 34–70849 (Nov. 12, 2013), 78 FR 69167
(Nov. 18, 2013) (File No. SR–ICC–2013–07) (order
approving rule change to clear SES Contracts
referencing the Republic of Turkey and the Russian
Federation); Securities Exchange Act Release No.
34–73220 (Sep. 25, 2014), 79 FR 59340 (Oct. 1,
2014) (File No. SR–ICC–2014–13) (order approving
rule change to clear SES Contracts referencing the
Republic of Hungary and the Republic of South
Africa); and Securities Exchange Act Release No.
34–74593 (Mar. 26, 2015), 80 FR 17538 (Apr. 1,
2 17
E:\FR\FM\15APN1.SGM
15APN1
Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices
The proposed changes to the ICC Rules
would provide for the clearance of an
additional SES Contract, specifically
Ukraine.
tkelley on DSK3SPTVN1PROD with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, ICC
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. ICC has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of these statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The purpose of the proposed rule
change is to adopt rules that will
provide the basis for ICC to clear an
additional credit default swap contract.
ICC has been approved to clear twelve
SES Contracts: The Federative Republic
of Brazil, the United Mexican States, the
Bolivarian Republic of Venezuela, the
Argentine Republic, the Republic of
Turkey, the Russian Federation, the
Republic of Hungary, the Republic of
South Africa, the Republic of Chile, the
Republic of Peru, the Republic of
Colombia, and the Republic of Poland.
ICC proposes amending Subchapter 26D
of its Rules to provide for the clearance
of an additional SES Contract,
specifically Ukraine. This additional
SES Contract will be offered on the 2014
ISDA Credit Derivatives Definitions.
The addition of the additional SES
Contract will benefit the market for
emerging market credit default swaps by
providing market participants the
benefits of clearing, including reduction
in counterparty risk and safeguarding of
margin assets pursuant to clearing house
rules. Clearing of the additional SES
Contract will not require any changes to
ICC’s Risk Management Framework or
other policies and procedures
constituting rules within the meaning of
the Act.
The additional SES Contract has
terms consistent with the other SES
Contracts approved for clearing at ICC
and governed by Subchapter 26D of the
ICC rules, namely the Federative
Republic of Brazil, the United Mexican
States, the Bolivarian Republic of
2015) (order approving rule change to clear SES
Contracts referencing the Republic of Chile, the
Republic of Peru, the Republic of Colombia, and the
Republic of Poland).
VerDate Sep<11>2014
17:29 Apr 14, 2015
Jkt 235001
Venezuela, the Argentine Republic, the
Republic of Turkey, the Russian
Federation, the Republic of Hungary,
the Republic of South Africa, the
Republic of Chile, the Republic of Peru,
the Republic of Colombia, and the
Republic of Poland. Minor revisions to
Subchapter 26D (Standard Emerging
Market Sovereign (‘‘SES’’) Single Name)
are made to provide for clearing the
additional SES Contract and are
described as follows.
Rule 26D–102 is modified to include
Ukraine in the list of specific Eligible
SES Reference Entities to be cleared by
ICC.
Section 17A(b)(3)(F) of the Act 4
requires, among other things, that the
rules of a clearing agency be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions and, to the extent
applicable, derivative agreements,
contracts, and transactions. The
clearance of the additional SES Contract
will allow market participants an
increased ability to manage risk. ICC
believes that acceptance of this new
contract, on the terms and conditions
set out in the ICC Rules, is consistent
with the prompt and accurate clearance
of and settlement of securities
transactions and derivative agreements,
contracts and transactions cleared by
ICC, the safeguarding of securities and
funds in the custody or control of ICC,
and the protection of investors and the
public interest, within the meaning of
Section 17A(b)(3)(F) of the Act.5
Clearing of the additional SES
Contract will also satisfy the
requirements of Rule 17Ad–22.6 In
particular, in terms of financial
resources, ICC will apply its existing
margin methodology to the additional
SES Contract. ICC believes that this
model will provide sufficient margin to
cover its credit exposure to its clearing
members from clearing this contract,
consistent with the requirements of Rule
17Ad–22(b)(2).7 In addition, ICC
believes its Guaranty Fund, under its
existing methodology, will, together
with the required margin, provide
sufficient financial resources to support
the clearing of the new contract
consistent with the requirements of Rule
17Ad–22(b)(3).8 ICC also believes that
its existing operational and managerial
resources will be sufficient for clearing
of the additional SES Contract,
consistent with the requirements of Rule
4 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1(b)(3)(F).
6 17 CFR 240.17Ad–22.
7 17 CFR 240.17Ad–22(b)(2).
8 17 CFR 240.17Ad–22(b)(3).
20281
17Ad–22(d)(4),9 as the new contract is
similar from an operational perspective
to existing SES Contracts. Similarly, ICC
will use its existing settlement
procedures and account structures for
the new contract, consistent with the
requirements of Rule 17Ad–22(d)(5),
(12) and (15) 10 as to the finality and
accuracy of its daily settlement process
and avoidance of the risk to ICC of
settlement failures. Finally, ICC will
apply its existing default management
policies and procedures for the new
contract. ICC believes that these
procedures allow for it to take timely
action to contain losses and liquidity
pressures and to continue meeting its
obligations in the event of clearing
member insolvencies or defaults in
respect of the additional SES Contract,
in accordance with Rule 17Ad–
22(d)(11).11
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The additional SES Contract will be
available to all ICC Participants for
clearing. The clearing of the additional
SES Contract by ICC does not preclude
the offering of the additional SES
Contract for clearing by other market
participants. Accordingly, ICC does not
believe that clearance of the additional
SES Contract will impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments relating to the
proposed rule change have not been
solicited or received. ICC will notify the
Commission of any written comments
received by ICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
the proposed rule change or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
5 15
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
9 17
CFR 240.17Ad–22(d)(4).
CFR 240.17Ad–22(d)(5), (12) and (15).
11 17 CFR 240.17Ad–22(d)(11).
10 17
E:\FR\FM\15APN1.SGM
15APN1
20282
Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICC–2015–006 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–ICC–2015–006. 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 (https://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
filings will also be available for
inspection and copying at the principal
office of ICE Clear Credit and on ICE
Clear Credit’s Web site at https://
www.theice.com/clear-credit/regulation.
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–ICC–2015–006 and should
be submitted on or before May 6, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Brent J. Fields,
Secretary.
[FR Doc. 2015–08543 Filed 4–14–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74690; File No. SR–
NASDAQ–2015–033]
Self-Regulatory Organizations; The
NASDAQ Stock Market, LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Update
Public Disclosure of Exchange Usage
of Market Data
April 9, 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 April 2,
2015, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to update the
public disclosure of the sources of data
that NASDAQ utilizes when performing
(1) order handling and execution; (2)
order routing; and (3) related
compliance processes.
The text of the proposed rule change
is below. Proposed new language is
italicized; proposed deletions are
bracketed.
*
*
*
*
*
4759. Data Feeds Utilized
[NASDAQ shall publicly disclose the
proprietary and network processor feeds
utilized by the System for the handling,
routing, and execution of orders, as well
as for the regulatory compliance
processes related to those functions.
This information shall be displayed on
www.nasdaqtrader.com, and it shall be
updated promptly each time NASDAQ
determines to add, subtract, or
otherwise modify a data source.]
The NASDAQ System utilizes the
below proprietary and network
processor feeds utilized by the System
for the handling, routing, and execution
of orders, as well as for the regulatory
compliance processes related to those
functions. The Secondary Source of
data is utilized only in emergency
market conditions and only until those
emergency conditions are resolved.
tkelley on DSK3SPTVN1PROD with NOTICES
Market center
Primary source
Secondary source
A—NYSE MKT (AMEX) ...................................................
B—NASDAQ OMX BX .....................................................
D—FINRA ADF ................................................................
J—DirectEdge A ...............................................................
K—DirectEdge X ..............................................................
M—CSX ............................................................................
N—NYSE ..........................................................................
P—NYSE Arca .................................................................
T/Q—NASDAQ .................................................................
X—NASDAQ OMX PSX ...................................................
Y—BATS Y-Exchange .....................................................
Z—BATS Exchange .........................................................
CQS/UQDF ......................................................................
BX ITCH 4.1 ....................................................................
CQS/UQDF ......................................................................
EdgeBook ........................................................................
EdgeBook ........................................................................
CQS/UQDF ......................................................................
NYSE OpenBook Ultra ....................................................
ArcaBook Binary uncompacted .......................................
ITCH 4.1 ..........................................................................
PSX ITCH 4.1 ..................................................................
BATS PITCH ....................................................................
BATS PITCH ....................................................................
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
17:29 Apr 14, 2015
Jkt 235001
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
E:\FR\FM\15APN1.SGM
15APN1
n/a
CQS/UQDF
n/a
CQS/UQDF
CQS/UQDF
n/a
CQS/UQDF
CQS/UQDF
CQS/UQDF
CQS/UQDF
CQS/UQDF
CQS/UQDF
]]>Agencies
[Federal Register Volume 80, Number 72 (Wednesday, April 15, 2015)]
[Notices]
[Pages 20280-20282]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-08543]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74688; File No. SR-ICC-2015-006]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change To Provide for the Clearance of an
Additional Standard Emerging Market Sovereign Single Name
April 9, 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 March 27, 2015, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared primarily by ICC. 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 purpose of the proposed rule change is to adopt rules that will
provide the basis for ICC to clear an additional credit default swap
contract. Specifically, ICC is proposing to amend Subchapter 26D of its
rules to provide for the clearance of an additional Standard Emerging
Market Sovereign CDS contract (``SES Contract''), namely Ukraine.
ICC has been approved to clear twelve SES Contracts: The Federative
Republic of Brazil, the United Mexican States, the Bolivarian Republic
of Venezuela, the Argentine Republic, the Republic of Turkey, the
Russian Federation, the Republic of Hungary, the Republic of South
Africa, the Republic of Chile, the Republic of Peru, the Republic of
Colombia, and the Republic of Poland.\3\
[[Page 20281]]
The proposed changes to the ICC Rules would provide for the clearance
of an additional SES Contract, specifically Ukraine.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 34-65588 (Oct. 18,
2011), 76 FR 65763 (Oct. 24, 2011) (File No. SR-ICC-2011-01) (order
approving rule change to clear SES Contracts referencing the
Federative Republic of Brazil, the United Mexican States, the
Bolivian Republic of Venezuela, and the Argentine Republic);
Securities Exchange Act Release No. 34-70849 (Nov. 12, 2013), 78 FR
69167 (Nov. 18, 2013) (File No. SR-ICC-2013-07) (order approving
rule change to clear SES Contracts referencing the Republic of
Turkey and the Russian Federation); Securities Exchange Act Release
No. 34-73220 (Sep. 25, 2014), 79 FR 59340 (Oct. 1, 2014) (File No.
SR-ICC-2014-13) (order approving rule change to clear SES Contracts
referencing the Republic of Hungary and the Republic of South
Africa); and Securities Exchange Act Release No. 34-74593 (Mar. 26,
2015), 80 FR 17538 (Apr. 1, 2015) (order approving rule change to
clear SES Contracts referencing the Republic of Chile, the Republic
of Peru, the Republic of Colombia, and the Republic of Poland).
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, ICC 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. ICC has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of these statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to adopt rules that will
provide the basis for ICC to clear an additional credit default swap
contract. ICC has been approved to clear twelve SES Contracts: The
Federative Republic of Brazil, the United Mexican States, the
Bolivarian Republic of Venezuela, the Argentine Republic, the Republic
of Turkey, the Russian Federation, the Republic of Hungary, the
Republic of South Africa, the Republic of Chile, the Republic of Peru,
the Republic of Colombia, and the Republic of Poland. ICC proposes
amending Subchapter 26D of its Rules to provide for the clearance of an
additional SES Contract, specifically Ukraine. This additional SES
Contract will be offered on the 2014 ISDA Credit Derivatives
Definitions. The addition of the additional SES Contract will benefit
the market for emerging market credit default swaps by providing market
participants the benefits of clearing, including reduction in
counterparty risk and safeguarding of margin assets pursuant to
clearing house rules. Clearing of the additional SES Contract will not
require any changes to ICC's Risk Management Framework or other
policies and procedures constituting rules within the meaning of the
Act.
The additional SES Contract has terms consistent with the other SES
Contracts approved for clearing at ICC and governed by Subchapter 26D
of the ICC rules, namely the Federative Republic of Brazil, the United
Mexican States, the Bolivarian Republic of Venezuela, the Argentine
Republic, the Republic of Turkey, the Russian Federation, the Republic
of Hungary, the Republic of South Africa, the Republic of Chile, the
Republic of Peru, the Republic of Colombia, and the Republic of Poland.
Minor revisions to Subchapter 26D (Standard Emerging Market Sovereign
(``SES'') Single Name) are made to provide for clearing the additional
SES Contract and are described as follows.
Rule 26D-102 is modified to include Ukraine in the list of specific
Eligible SES Reference Entities to be cleared by ICC.
Section 17A(b)(3)(F) of the Act \4\ requires, among other things,
that the rules of a clearing agency be designed to promote the prompt
and accurate clearance and settlement of securities transactions and,
to the extent applicable, derivative agreements, contracts, and
transactions. The clearance of the additional SES Contract will allow
market participants an increased ability to manage risk. ICC believes
that acceptance of this new contract, on the terms and conditions set
out in the ICC Rules, is consistent with the prompt and accurate
clearance of and settlement of securities transactions and derivative
agreements, contracts and transactions cleared by ICC, the safeguarding
of securities and funds in the custody or control of ICC, and the
protection of investors and the public interest, within the meaning of
Section 17A(b)(3)(F) of the Act.\5\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78q-1(b)(3)(F).
\5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Clearing of the additional SES Contract will also satisfy the
requirements of Rule 17Ad-22.\6\ In particular, in terms of financial
resources, ICC will apply its existing margin methodology to the
additional SES Contract. ICC believes that this model will provide
sufficient margin to cover its credit exposure to its clearing members
from clearing this contract, consistent with the requirements of Rule
17Ad-22(b)(2).\7\ In addition, ICC believes its Guaranty Fund, under
its existing methodology, will, together with the required margin,
provide sufficient financial resources to support the clearing of the
new contract consistent with the requirements of Rule 17Ad-22(b)(3).\8\
ICC also believes that its existing operational and managerial
resources will be sufficient for clearing of the additional SES
Contract, consistent with the requirements of Rule 17Ad-22(d)(4),\9\ as
the new contract is similar from an operational perspective to existing
SES Contracts. Similarly, ICC will use its existing settlement
procedures and account structures for the new contract, consistent with
the requirements of Rule 17Ad-22(d)(5), (12) and (15) \10\ as to the
finality and accuracy of its daily settlement process and avoidance of
the risk to ICC of settlement failures. Finally, ICC will apply its
existing default management policies and procedures for the new
contract. ICC believes that these procedures allow for it to take
timely action to contain losses and liquidity pressures and to continue
meeting its obligations in the event of clearing member insolvencies or
defaults in respect of the additional SES Contract, in accordance with
Rule 17Ad-22(d)(11).\11\
---------------------------------------------------------------------------
\6\ 17 CFR 240.17Ad-22.
\7\ 17 CFR 240.17Ad-22(b)(2).
\8\ 17 CFR 240.17Ad-22(b)(3).
\9\ 17 CFR 240.17Ad-22(d)(4).
\10\ 17 CFR 240.17Ad-22(d)(5), (12) and (15).
\11\ 17 CFR 240.17Ad-22(d)(11).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The additional SES Contract will be available to all ICC
Participants for clearing. The clearing of the additional SES Contract
by ICC does not preclude the offering of the additional SES Contract
for clearing by other market participants. Accordingly, ICC does not
believe that clearance of the additional SES Contract will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments relating to the proposed rule change have not been
solicited or received. ICC will notify the Commission of any written
comments received by ICC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove the proposed rule change or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
[[Page 20282]]
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-ICC-2015-006 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-ICC-2015-006. 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 (https://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 filings will also be available
for inspection and copying at the principal office of ICE Clear Credit
and on ICE Clear Credit's Web site at https://www.theice.com/clear-credit/regulation.
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-ICC-2015-006
and should be submitted on or before May 6, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Brent J. Fields,
Secretary.
[FR Doc. 2015-08543 Filed 4-14-15; 8:45 am]
BILLING CODE 8011-01-P
