Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving 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, 61649 [2012-24858]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 77, Number 196 (Wednesday, October 10, 2012)]
[Notices]
[Page 61649]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-24858]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67970; File No. SR-ICC-2012-12]


Self-Regulatory Organizations; ICE Clear Credit LLC; Order 
Approving 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

October 3, 2012.

I. Introduction

    On August 9, 2012, ICE Clear Credit LLC (``ICC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change SR-ICC-2012-12 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 August 24, 2012.\2\ 
The Commission received no comment letters. For the reasons discussed 
below, the Commission is granting approval of the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release No. 34-67696 (August 20, 
2012), 77 FR 51599 (August 24, 2012).
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II. Description of the Proposal

    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'').
    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 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 submitted was the inclusion of the Additional 
Single Names to Schedule 502 of the ICC Rules. The Additional Single 
Names were reviewed by the ICC Risk Department, the ICC Trading 
Advisory Committee, and the ICC Risk Committee.

III. Discussion

    Section 19(b)(2)(C) of the Act \3\ 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.
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    \3\ 15 U.S.C. 78s(b)(2)(C).
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    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, and to assure the safeguarding of securities and funds 
which are in the custody or control of the clearing agency or for which 
it is responsible.
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    \4\ 15 U.S.C. 78q-1(b)(3)(F).
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    The proposed rule change is consistent with the requirements of 
Section 17A(b)(3)(F) and other requirements 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 \5\ and the 
rules and regulations thereunder.
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    \5\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (File No. SR-ICC-2012-12) be, and 
hereby is, approved.\7\
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    \6\ 15 U.S.C. 78s(b)(2).
    \7\ 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).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-24858 Filed 10-9-12; 8:45 am]
BILLING CODE 8011-01-P