Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change To Amend Schedule 502 of the ICE Clear Credit Rules To Provide for Clearing of Additional Single Name Investment Grade CDS Contracts, 51599-51600 [2012-20823]
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Federal Register / Vol. 77, No. 165 / Friday, August 24, 2012 / Notices
other activities; and (ii) the transaction
is effected in compliance with the rules
of the Commission, which, at a
minimum, assure that the transaction is
not inconsistent with the maintenance
of fair and orderly markets and yields
priority, parity and precedence in
execution to orders for the account of
persons who are not members or
associated with members of the
exchange.18 In addition, Rule 11a1–1(T)
under the Act specifies that a
transaction effected on a national
securities exchange for the account of a
member which meets the requirements
of Section 11(a)(1)(G)(i) of the Act is
deemed, in accordance with the
requirements of Section 11(a)(1)(G)(ii),
to be not inconsistent with the
maintenance of fair and orderly markets
and to yield priority, parity, and
precedence in execution to orders for
the account of non-members or persons
associated with non-members of the
exchange, if such transaction is effected
in compliance with certain
requirements.19
Under the proposals, the Exchanges
would add G orders priced better than
the closing price to the list of ‘‘must
execute’’ interest to be allocated in
whole or part at the close. Only G orders
priced better than the closing price
would be eligible to execute as part of
the ‘‘must execute’’ interest, and then
only after execution of all other ‘‘must
execute’’ interest.20
erowe on DSK2VPTVN1PROD with
18 See
15 U.S.C. 78k(a)(1)(G).
19 Rule 11a1–1(T)(a)(1)–(3) provides that each of
the following requirements must be met: (1) A
member must disclose that a bid or offer for its
account is for its account to any member with
whom such bid or offer is placed or to whom it is
communicated, and any member through whom
that bid or offer is communicated must disclose to
others participating in effecting the order that it is
for the account of a member; (2) immediately before
executing the order, a member (other than the
specialist in such security) presenting any order for
the account of a member on the exchange must
clearly announce or otherwise indicate to the
specialist and to other members then present for the
trading in such security on the exchange that he is
presenting an order for the account of a member;
and (3) notwithstanding rules of priority, parity,
and precedence otherwise applicable, any member
presenting for execution a bid or offer for its own
account or for the account of another member must
grant priority to any bid or offer at the same price
for the account of a person who is not, or is not
associated with, a member, irrespective of the size
of any such bid or offer or the time when entered.
See 17 CFR 240.11a1–1(T)(a)(1)–(3).
20 In its proposal, the Exchanges note that Section
11(a)(1)(G) of the Act does not require better-priced
G orders to yield. See Notices, 77 FR at 40135 and
40131. See also 17 CFR 240.11a1–1(T)(a)(3), which
requires that a ‘‘member presenting for execution a
bid or offer for its own account or for the account
of another member shall grant priority to any bid
or offer at the same price for the account of a person
who is not, or is not associated with, a member
irrespective of the size of any such bid or offer or
the time when entered.’’ The priority of G orders
with a price equal to the closing price in relation
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15:22 Aug 23, 2012
Jkt 226001
The Commission believes that it is
consistent with the requirements of the
Act for G orders priced better than the
closing price to execute before ‘‘may
execute’’ interest priced equal to the
closing price. Such G orders could offer
contra-side interest a chance at price
improvement if executed prior to the
close. Further, because the rules will
require G orders priced better than the
closing price to yield to all other eligible
orders priced better than the closing
price, the Commission believes that the
proposal, with respect to such priority,
is consistent with Section 11(a)(1)(G) of
the Act21 and Rule 11a1–1(T)(a)(3)
thereunder.22
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,23 that the
proposed rule changes (SR–NYSE–
2012–19 and SR–NYSEMKT–2012–13),
as modified by Amendment No. 1, be,
and hereby are, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012–20839 Filed 8–23–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67696; File No. SR–ICC–
2012–12]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing of
Proposed Rule Change To Amend
Schedule 502 of the ICE Clear Credit
Rules To Provide for Clearing of
Additional Single Name Investment
Grade CDS Contracts
August 20, 2012.
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 August 9,
to other ‘‘may execute’’ interest will remain
unchanged under the proposal.
21 15 U.S.C. 78k(a)(1)(G).
22 17 CFR 240.11a1–1(T). The Commission notes
that this exemption is available only for orders for
the account of Exchange members. The Commission
also reminds the Exchanges and their members that,
in addition to yielding priority to non-member
orders at the same price, members submitting ‘‘G
orders’’ must also meet the other requirements
under section 11(a)(1)(G) and Rule 11a1–1(T) to
effect transactions for their own accounts in
reliance on this exception (or satisfy the
requirements of another exception).
23 15 U.S.C. 78s(b)(2).
24 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
51599
2012, 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 proposed rule change
is to provide for the clearance of the
following twenty additional investment
grade Standard North American
Corporate Single Name CDS contracts:
Nucor Corporation; V.F. Corporation;
The Procter & Gamble Company; Encana
Corporation; Weatherford International
Ltd.; Chevron Corporation; Nexen Inc.;
Energy Transfer Partners, L.P.; Apache
Corporation; Kimco Realty Corporation;
Prudential Financial, Inc.; Prologis, L.P.;
HCP, Inc.; Lincoln National
Corporation; The Travelers Companies,
Inc.; Textron Financial Corporation;
Textron Inc.; The Williams Companies,
Inc.; Pacific Gas and Electric Company;
and Starwood Hotels & Resorts
Worldwide, Inc. (the ‘‘Additional Single
Names’’).
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.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
As with the Standard North American
Corporate Single Names currently
cleared, ICC plans to provide for the
clearance of contracts with a
restructuring type of no restructuring,
standardized maturity dates up to the
10-year tenor and both standardized
coupons. One of the Additional Single
Names (Starwood Hotels & Resorts
Worldwide, Inc.) was recently added by
Markit as one of the one hundred
3 The Commission has modified the text of the
summaries prepared by ICC.
E:\FR\FM\24AUN1.SGM
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51600
Federal Register / Vol. 77, No. 165 / Friday, August 24, 2012 / Notices
twenty-five single constituents of its
Markit CDX North American Investment
Grade Series 18 Index, and is not
currently being cleared by ICC. Another
of the Additional Single Names (Textron
Financial Corporation) is a constituent
of the Series 8 through 12 of the Markit
CDX North American Investment Grade
Index, and has not been cleared
previously by ICC. All other Additional
Single Names are not constituents of
Series 8 through 18 of the Markit CDX
North American Investment Grade
Index. The Additional Single Names do
not require any changes to the body of
the ICC Rules. ICC will clear the
Additional Single Names pursuant to
ICC’s existing Rules. The Additional
Single Names do not require any
changes to the ICC risk management
framework including the ICC margin
methodology, guaranty fund
methodology, pricing parameters, or
pricing model. The only change being
submitted is the inclusion of the
Additional Single Names to Schedule
502 of the ICC Rules. The Additional
Single Names have been reviewed by
the ICC Risk Department, the ICC
Trading Advisory Committee, and the
ICC Risk Committee.
ICC believes that the clearing of the
Additional Single Names is consistent
with the purposes and requirements of
Section 17A of the Act 4 and the rules
and regulations thereunder applicable to
ICC because it will facilitate the prompt
and accurate settlement of securitybased swaps and contribute to the
safeguarding of securities and funds
associated with security-based swap
transactions.
Self-Regulatory Organization’s
Statement on Burden on Competition
ICC does not believe the proposed
rule change would have any impact, or
impose any burden, on competition.
erowe on DSK2VPTVN1PROD with
(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
4 15
U.S.C. 78q–1.
VerDate Mar<15>2010
15:22 Aug 23, 2012
Jkt 226001
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.
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 rulecomments@sec.gov. Please include File
Number SR–ICC–2012–12 on the subject
line.
Paper Comments
• 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–ICC–2012–12. 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 Section, 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 ICC and on ICC’s Web site at
https://www.theice.com/publicdocs/
regulatory_filings/
ICEClearCredit_080912.pdf.
All comments received will be posted
without change; the Commission does
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
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–2012–12 and should
be submitted on or before September 14,
2012.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.5
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012–20823 Filed 8–23–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67692; File No. SR–ICC–
2012–13]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Schedule 502
of the ICC Rules To Provide for
Clearing of Additional Markit CDX
North American Investment Grade
Indices
August 20, 2012.
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 August
10, 2012, 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.
ICC filed the proposed rule change
pursuant to Section 19(b)(3)(A) 3 of the
Act and Rule 19b–4(f)(4)(ii) 4
thereunder, so that the proposed rule
change was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested parties.
I. Self-Regulatory Organization’s
Statement of Terms of Substance of the
Proposed Rule Change
The purpose of proposed rule change
is to provide for the clearance of the
following credit default swaps: Markit
CDX North American Investment Grade
Series 11 Index with a seven year
maturity, maturing on December 20,
2015, Markit CDX North American
Investment Grade Series 12 Index with
5 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4)(ii).
1 15
E:\FR\FM\24AUN1.SGM
24AUN1
]]>Agencies
[Federal Register Volume 77, Number 165 (Friday, August 24, 2012)]
[Notices]
[Pages 51599-51600]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-20823]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67696; File No. SR-ICC-2012-12]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change To Amend Schedule 502 of the ICE Clear
Credit Rules To Provide for Clearing of Additional Single Name
Investment Grade CDS Contracts
August 20, 2012.
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 August 9, 2012, 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 proposed rule change is to provide for the clearance
of the following twenty additional investment grade Standard North
American Corporate Single Name CDS contracts: Nucor Corporation; V.F.
Corporation; The Procter & Gamble Company; Encana Corporation;
Weatherford International Ltd.; Chevron Corporation; Nexen Inc.; Energy
Transfer Partners, L.P.; Apache Corporation; Kimco Realty Corporation;
Prudential Financial, Inc.; Prologis, L.P.; HCP, Inc.; Lincoln National
Corporation; The Travelers Companies, Inc.; Textron Financial
Corporation; Textron Inc.; The Williams Companies, Inc.; Pacific Gas
and Electric Company; and Starwood Hotels & Resorts Worldwide, Inc.
(the ``Additional Single Names'').
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.\3\
---------------------------------------------------------------------------
\3\ The Commission has modified the text of the summaries
prepared by ICC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
As with the Standard North American Corporate Single Names
currently cleared, ICC plans to provide for the clearance of contracts
with a restructuring type of no restructuring, standardized maturity
dates up to the 10-year tenor and both standardized coupons. One of the
Additional Single Names (Starwood Hotels & Resorts Worldwide, Inc.) was
recently added by Markit as one of the one hundred
[[Page 51600]]
twenty-five single constituents of its Markit CDX North American
Investment Grade Series 18 Index, and is not currently being cleared by
ICC. Another of the Additional Single Names (Textron Financial
Corporation) is a constituent of the Series 8 through 12 of the Markit
CDX North American Investment Grade Index, and has not been cleared
previously by ICC. All other Additional Single Names are not
constituents of Series 8 through 18 of the Markit CDX North American
Investment Grade Index. The Additional Single Names do not require any
changes to the body of the ICC Rules. ICC will clear the Additional
Single Names pursuant to ICC's existing Rules. The Additional Single
Names do not require any changes to the ICC risk management framework
including the ICC margin methodology, guaranty fund methodology,
pricing parameters, or pricing model. The only change being submitted
is the inclusion of the Additional Single Names to Schedule 502 of the
ICC Rules. The Additional Single Names have been reviewed by the ICC
Risk Department, the ICC Trading Advisory Committee, and the ICC Risk
Committee.
ICC believes that the clearing of the Additional Single Names is
consistent with the purposes and requirements of Section 17A of the Act
\4\ and the rules and regulations thereunder applicable to ICC because
it will facilitate the prompt and accurate settlement of security-based
swaps and contribute to the safeguarding of securities and funds
associated with security-based swap transactions.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
Self-Regulatory Organization's Statement on Burden on Competition
ICC does not believe the proposed rule change would have any
impact, or impose any burden, on competition.
(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.
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.shtmlSec. ); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-ICC-2012-12 on the subject line.
Paper Comments
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-ICC-2012-12. 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.shtmlSec. ). 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 Section, 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 ICC
and on ICC's Web site at https://www.theice.com/publicdocs/regulatory_filings/ICEClearCredit_080912.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-ICC-2012-12
and should be submitted on or before September 14, 2012.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-20823 Filed 8-23-12; 8:45 am]
BILLING CODE 8011-01-P
