Self-Regulatory Organizations; ICE Clear Europe Limited; Order Approving Proposed Rule Change to Provide for a T+1 Settlement of the Initial Payment Related to the CDS Contracts Cleared by ICE Clear Europe Limited, 26066-26067 [2012-10539]
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26066
Federal Register / Vol. 77, No. 85 / Wednesday, May 2, 2012 / Notices
such data. Competition is promoted as
the Exchange cannot set unreasonable
fees without losing business to its
competitors.14
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
There is significant competition for
the provision of market data to market
participants, as well as competition for
the orders that generate that data. In
introducing the proposed fees for this
service, the Exchange would be
providing one similar to alternatives
offered by other market centers.15 The
existence of such alternatives ensures
that the Exchange cannot set
unreasonable fees, or fees that are
unreasonably discriminatory, without
losing business to these alternatives.
Thus, the EDGX Book Feed will
promote competition if it succeeds in
providing market participants with
viable and cost-effective alternatives
which drive the market to continually
improve products and services to cater
to customers’ data needs.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
Members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
mstockstill on DSK4VPTVN1PROD with NOTICES
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
the Act 16 and Rule 19b–4(f)(2) 17
thereunder. At any time within 60 days
of the filing of such proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
14 See infra discussion in section II.B. ‘‘SelfRegulatory Organization’s Statement on Burden on
Competition.’’
15 See Nasdaq Rule 7019(b). See also Securities
Exchange Act Release No. 62876 (September 9,
2010), 75 FR 56624 (September 16, 2010) (SR–
PHLX–2010–120). See also Securities Exchange Act
Release No. 62907 (September 14, 2010), 75 FR
57314 (September 20, 2010) (SR–NASDAQ–2010–
110). See also Securities Exchange Act Release No.
63442 (December 6, 2010), 75 FR 77029 (December
10, 2010) (SR–BX–2010–081).
16 15 U.S.C. 78s(b)(3)(A).
17 17 CFR 19b–4(f)(2).
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16:55 May 01, 2012
Jkt 226001
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
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
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–10541 Filed 5–1–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66862; File No. SR–ICEEU–
2012–04]
• 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–
EDGX–2012–14 on the subject line.
Self-Regulatory Organizations; ICE
Clear Europe Limited; Order Approving
Proposed Rule Change to Provide for
a T+1 Settlement of the Initial Payment
Related to the CDS Contracts Cleared
by ICE Clear Europe Limited
Paper Comments
I. Introduction
On March 6, 2012, ICE Clear Europe
Limited (‘‘ICE Clear Europe’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change SR–ICEEU–2012–
04 pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’).1 The proposed rule change was
published for comment in the Federal
Register on March 19, 2012.2 The
Commission received no comment
letters. For the reasons discussed below,
the Commission is granting approval of
the proposed rule change.
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–EDGX–2012–14. 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
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
publicly available. All submissions
should refer to File Number SR–EDGX–
2012–14, and should be submitted on or
before May 23, 2012.
PO 00000
Frm 00108
Fmt 4703
Sfmt 4703
April 26, 2012.
II. Description
ICE Clear Europe proposed rule
amendments that were intended to
modify the terms of each of the various
CDS Contracts cleared by ICE Clear
Europe (iTraxx Contracts, Standard
European Corporate, and Sovereign
Contracts) to make the Initial Payment 3
date the first business day immediately
following the trade date, provided that
with respect to CDS Contracts that are
accepted for clearing after the trade
date, the Initial Payment date will be the
date that is the first business day
following the date when the CDS
Contract is accepted for clearing. The
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 Securities Exchange Act Release No. 34–66581
(March 13, 2012), 77 FR 16105 (March 19, 2012).
3 Initial Payment means, in relation to a CDS
Contract, the payment, if any, specified as the
‘‘Initial Payment Amount’’ (or, in relation to certain
CDS Contracts relating to indices, as the
‘‘Additional Amount’’) under the Contract Terms
for such CDS Contract and, in relation to a Bilateral
CDS Transaction, the payment, usually described
therein as the ‘‘Initial Payment Amount’’ or
‘‘Additional Amount,’’ payable by one party thereto
to the other on the third business day after the trade
date of such Bilateral CDS Transaction. See ICE
Clear Europe Clearing Rules, Section 1, Rule 101.
1 15
E:\FR\FM\02MYN1.SGM
02MYN1
Federal Register / Vol. 77, No. 85 / Wednesday, May 2, 2012 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
Initial Payment under a CDS Contract is
established at the time the contract is
executed and may be payable from
either the protection buyer to the
protection seller or vice versa. Under
the current ICE Clear Europe Rules (by
way of the incorporated ISDA Credit
Derivatives Definitions), and consistent
with practice in the market for
uncleared credit default swaps, the
Initial Payment is required to be made
on the third business day following the
trade date. ICE Clear Europe proposed to
amend the definition of Initial Payment
in its Clearing Rules to provide instead
that the Initial Payment is to be made
on the first business day following the
trade date (or, if the transaction is
accepted for clearing after the trade
date, the Initial Payment is to be made
on the first business day following the
date of acceptance for clearing). ICE
Clear Europe believes that this change
from T+3 settlement to T+1 settlement
will reduce settlement risk for the
clearinghouse and clearing members
and improve margin efficiency (as
margin requirements will no longer
need to take into account the additional
risk from a T+3 as opposed to a T+1
settlement rule). ICE Clear Europe’s CDS
Risk Committee approved the proposed
rule changes.
The other proposed changes in the
ICE Clear Europe Rules reflect updates
to cross-references and defined terms
and similar drafting clarifications, and
do not affect the substance of the ICE
Clear Europe Rules or cleared products.
III. Discussion
Section 19(b)(2)(B) of the Act 4 directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if it finds that such
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to such organization. Section
17A(b)(3)(F) of the Act 5 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.
By accelerating the Initial Payment
date, the proposed rule change will
reduce settlement risk for the
clearinghouse and clearing members
and improve margin efficiency (as
margin requirements will no longer
need to take into account the additional
risk from a T+3 as opposed to a T+1
settlement rule), thereby promoting the
prompt and accurate clearance and
4 15
5 15
U.S.C. 78s(b)(2)(B).
U.S.C. 78q–1(b)(3)(F).
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16:55 May 01, 2012
Jkt 226001
settlement of derivative agreements,
contracts, and transactions, and assuring
the safeguarding of securities and funds
which are in the custody or control of
ICE Clear Europe. As a result, the
proposed rule change is consistent with
the requirements of Section 17A(b)(3)(F)
of the Act.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 6
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (File No. SR–
ICEEU–2012–04) be, and hereby is,
approved.8
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin O’Neill,
Deputy Secretary.
26067
custodians. I also determine that the
exhibition or display of the exhibit
objects at The Crystal Bridges Museum
of American Art in Bentonville,
Arkansas from on or about May 12 until
on or about August 13, 2012; the High
Museum of Art in Atlanta, Georgia from
on or about September 22, 2012 until on
or about January 6, 2013; and possible
additional exhibitions or venues yet to
be determined; is in the national
interest. I have ordered that Public
Notice of these Determinations be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Ona M.
Hahs, Attorney-Adviser, Office of the
Legal Adviser, U.S. Department of State
(telephone: 202–632–6473). The mailing
address is U.S. Department of State,
SA–5, L/PD, Fifth Floor (Suite 5H03),
Washington, DC 20522–0505.
[FR Doc. 2012–10539 Filed 5–1–12; 8:45 am]
Dated: April 27, 2012.
J. Adam Ereli,
Principal Deputy Assistant Secretary, Bureau
of Educational and Cultural Affairs,
Department of State.
BILLING CODE 8011–01–P
[FR Doc. 2012–10598 Filed 5–1–12; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice 7866]
DEPARTMENT OF TRANSPORTATION
Culturally Significant Objects Imported
for Exhibition Determinations:
‘‘American Encounters: Thomas Cole
and the American Landscape’’
Intelligent Transportation Systems
Program Advisory Committee; Notice
of Meeting
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000
(and, as appropriate, Delegation of
Authority No. 257 of April 15, 2003), I
hereby determine that the objects to be
included in the exhibition ‘‘American
Encounters: Thomas Cole and the
American Landscape,’’ imported from
abroad by the High Museum of Art for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to loan
agreements with the foreign owners or
SUMMARY:
6 15
U.S.C. 78q–1.
U.S.C. 78s(b)(2).
8 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
9 17 CFR 200.30–3(a)(12).
7 15
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
ITS Joint Program Office,
Research and Innovative Technology
Administration, U.S. Department of
Transportation.
ACTION: Notice.
AGENCY:
The Intelligent Transportation
Systems (ITS) Program Advisory
Committee (ITS PAC) will hold a
meeting on May 24, 2012, from 8:00
a.m. to 4:00 p.m. (EDT), in conference
room #7 of the U.S. Department of
Transportation (U.S. DOT) Conference
Center on the lobby level of the U.S.
DOT West Building, 1200 New Jersey
Avenue SE, Washington, DC 20590.
The ITS PAC, established under
Section 5305 of Public Law 109–59,
Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for
Users, August 10, 2005, and re-chartered
on January 23, 2012, was created to
advise the Secretary of Transportation
on all matters relating to the study,
development, and implementation of
intelligent transportation systems.
Through its sponsor, the ITS Joint
Program Office, the ITS PAC makes
recommendations to the Secretary
regarding ITS Program needs, objectives,
E:\FR\FM\02MYN1.SGM
02MYN1
]]>Agencies
[Federal Register Volume 77, Number 85 (Wednesday, May 2, 2012)]
[Notices]
[Pages 26066-26067]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-10539]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66862; File No. SR-ICEEU-2012-04]
Self-Regulatory Organizations; ICE Clear Europe Limited; Order
Approving Proposed Rule Change to Provide for a T+1 Settlement of the
Initial Payment Related to the CDS Contracts Cleared by ICE Clear
Europe Limited
April 26, 2012.
I. Introduction
On March 6, 2012, ICE Clear Europe Limited (``ICE Clear Europe'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change SR-ICEEU-2012-04 pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'').\1\ The proposed rule
change was published for comment in the Federal Register on March 19,
2012.\2\ The Commission received no comment letters. For the reasons
discussed below, the Commission is granting approval of the proposed
rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ Securities Exchange Act Release No. 34-66581 (March 13,
2012), 77 FR 16105 (March 19, 2012).
---------------------------------------------------------------------------
II. Description
ICE Clear Europe proposed rule amendments that were intended to
modify the terms of each of the various CDS Contracts cleared by ICE
Clear Europe (iTraxx Contracts, Standard European Corporate, and
Sovereign Contracts) to make the Initial Payment \3\ date the first
business day immediately following the trade date, provided that with
respect to CDS Contracts that are accepted for clearing after the trade
date, the Initial Payment date will be the date that is the first
business day following the date when the CDS Contract is accepted for
clearing. The
[[Page 26067]]
Initial Payment under a CDS Contract is established at the time the
contract is executed and may be payable from either the protection
buyer to the protection seller or vice versa. Under the current ICE
Clear Europe Rules (by way of the incorporated ISDA Credit Derivatives
Definitions), and consistent with practice in the market for uncleared
credit default swaps, the Initial Payment is required to be made on the
third business day following the trade date. ICE Clear Europe proposed
to amend the definition of Initial Payment in its Clearing Rules to
provide instead that the Initial Payment is to be made on the first
business day following the trade date (or, if the transaction is
accepted for clearing after the trade date, the Initial Payment is to
be made on the first business day following the date of acceptance for
clearing). ICE Clear Europe believes that this change from T+3
settlement to T+1 settlement will reduce settlement risk for the
clearinghouse and clearing members and improve margin efficiency (as
margin requirements will no longer need to take into account the
additional risk from a T+3 as opposed to a T+1 settlement rule). ICE
Clear Europe's CDS Risk Committee approved the proposed rule changes.
---------------------------------------------------------------------------
\3\ Initial Payment means, in relation to a CDS Contract, the
payment, if any, specified as the ``Initial Payment Amount'' (or, in
relation to certain CDS Contracts relating to indices, as the
``Additional Amount'') under the Contract Terms for such CDS
Contract and, in relation to a Bilateral CDS Transaction, the
payment, usually described therein as the ``Initial Payment Amount''
or ``Additional Amount,'' payable by one party thereto to the other
on the third business day after the trade date of such Bilateral CDS
Transaction. See ICE Clear Europe Clearing Rules, Section 1, Rule
101.
---------------------------------------------------------------------------
The other proposed changes in the ICE Clear Europe Rules reflect
updates to cross-references and defined terms and similar drafting
clarifications, and do not affect the substance of the ICE Clear Europe
Rules or cleared products.
III. Discussion
Section 19(b)(2)(B) of the Act \4\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if it
finds that such proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to such organization. Section 17A(b)(3)(F) of the Act \5\
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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2)(B).
\5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
By accelerating the Initial Payment date, the proposed rule change
will reduce settlement risk for the clearinghouse and clearing members
and improve margin efficiency (as margin requirements will no longer
need to take into account the additional risk from a T+3 as opposed to
a T+1 settlement rule), thereby promoting the prompt and accurate
clearance and settlement of derivative agreements, contracts, and
transactions, and assuring the safeguarding of securities and funds
which are in the custody or control of ICE Clear Europe. As a result,
the proposed rule change is consistent with the requirements of Section
17A(b)(3)(F) of the Act.
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of Section 17A of the Act \6\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (File No. SR-ICEEU-2012-04) be,
and hereby is, approved.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
\8\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).
\9\ 17 CFR 200.30-3(a)(12).
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Kevin O'Neill,
Deputy Secretary.
[FR Doc. 2012-10539 Filed 5-1-12; 8:45 am]
BILLING CODE 8011-01-P
