Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, Related to Regulatory Reporting of Swap Data, 22350-22353 [2013-08727]
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Federal Register / Vol. 78, No. 72 / Monday, April 15, 2013 / Notices
disclosed in you comment submission.
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Federal Rulemaking Web site: Public
comments and supporting materials
related to this notice can be found at
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on Docket ID: NRC–2012–0066.
FOR FURTHER INFORMATION CONTACT:
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Office of Nuclear Regulatory Research,
U.S. Nuclear Regulatory Commission,
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Telephone: 301–251–7574, email:
mary.drouin@nrc.gov.
NUREG–
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SUPPLEMENTARY INFORMATION:
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of April, 2013.
For the Nuclear Regulatory Commission.
Gary M. DeMoss,
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Division of Risk Analysis, Office of Nuclear
Regulatory Research.
[FR Doc. 2013–08693 Filed 4–12–13; 8:45 am]
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69356; File No. SR–ICC–
2013–05]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing and
Order Granting Accelerated Approval
of a Proposed Rule Change, as
Modified by Amendment No. 1, Related
to Regulatory Reporting of Swap Data
April 9, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’),1 and Rule 19b–4,2
notice is hereby given that on March 25,
2013, ICE Clear Credit LLC (‘‘ICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change, as modified by
Amendment No. 1,3 and as described in
Items I and II below, which Items have
been substantially prepared by the
clearing agency. The Commission is
publishing this notice and order to
solicit comments on the proposed rule
change from interested persons and to
approve the proposed rule change on an
accelerated basis.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
ICC proposes to add, in Chapter 2 of
the ICC Rules, Rule 211 (Regulatory
Reporting of Swap Data). ICC proposes
to add Rule 211 in order to implement
swap data repository (‘‘SDR’’) reporting
(‘‘SDR Reporting’’) consistent with the
Commodity Futures Trading
Commission (‘‘CFTC’’) Regulations
relating to the regulatory reporting of
swap data, specifically Part 45 of CFTC
Regulations (‘‘Part 45’’).4 ICC currently
complies with the CFTC’s Regulations
relating to the regulatory reporting of
swap data by reporting to
IntercontinentalExchange, Inc.’s SDR,
selected by ICC. In order to codify ICC’s
practice of reporting relevant Part 45
data to the SDR selected by ICC, which
is intended to meet ICC’s and its
Clearing Participants’ swap data
reporting obligations under Part 45, ICC
proposes to add, in Chapter 2 of the ICC
Rules, Rule 211 (Regulatory Reporting of
Swap Data).
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 ICC filed Amendment No. 1 to ICC–2013–05 on
April 8, 2013. In Amendment No. 1, ICC amended
Form 19b–4 and Exhibit 1 to include references to
Commodity Futures Trading Commission
Regulation 45.3.
4 17 CFR 45.
2 17
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II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency 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 III below. The
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.5
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
ICC proposes to add, in Chapter 2 of
the ICC Rules, Rule 211 in order to
implement SDR Reporting consistent
with CFTC Regulations 45.3,6 45.4(b),7
and 45.9.8 Proposed ICC Rule 211 states
that for the purposes of complying with
applicable CFTC rules governing the
regulatory reporting of swaps, ICC will
report all creation and continuation data
to IntercontinentalExchange, Inc.’s SDR.
In addition, proposed ICC Rule 211
provides that, upon the request of an
ICC Clearing Participant that is a
counterparty to a swap cleared at ICC,
ICC shall provide the same creation and
continuation data to the SDR selected by
the Clearing Participant.
Proposed Rule 211 is consistent with
the CFTC’s Regulation 45.3 9 and
45.4(b),10 which requires that creation
and continuation data must be reported
by both the derivatives clearing
organization and the reporting
counterparty. ICC currently complies
with the CFTC’s Regulation 45.3 11 and
45.4(b) 12 by reporting swap data to
IntercontinentalExchange, Inc.’s SDR
selected by ICC. In order to codify ICC’s
practice of reporting relevant Part 45
data to the SDR selected by ICC, ICC
proposes to add, in Chapter 2 of the ICC
Rules, Rule 211 (Regulatory Reporting of
Swap Data).
The addition of ICC Rule 211 also is
in response to swap dealers’ mandatory
compliance with CFTC Regulation
45.3 13 and 45.4,14 which was required
by February 28, 2013. ICC believes that
proposed ICC Rule 211 is also consistent
5 The Commission has modified the text of the
summaries prepared by the clearing agency.
6 17 CFR 45.3.
7 17 CFR 45.4(b).
8 17 CFR 45.9.
9 17 CFR 45.3.
10 17 CFR 45.4(b).
11 17 CFR 45.3.
12 17 CFR 45.4(b).
13 17 CFR 45.3.
14 17 CFR 45.4.
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with the CFTC’s Regulation 45.9,15
which provides that swap
counterparties required by Part 45 to
report swap creation or continuation
data may contract with third-party
service providers to facilitate reporting.
Proposed ICC Rule 211 ensures that ICC,
in the capacity of a third-party service
provider, will be able to report required
swap creation and continuation data on
behalf of ICC’s Clearing Participants, in
compliance with the Clearing
Participants’ reporting obligations under
CFTC’s swap data reporting Regulations.
ICC believes that proposed ICC Rule
211 is consistent with the requirements
of Section 17A of the Exchange Act 16
and the rules and regulations
thereunder applicable to it. Specifically,
ICC believes the proposed rule is
consistent with Section 17A(b)(3)(F) of
the Exchange Act,17 which 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,
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, and to protect
investors and the public interest. As a
derivatives clearing organization
registered with the CFTC, ICC must
comply with CFTC Regulations,
including CFTC Regulation 45.3 18 and
45.4.19 ICC believes this proposed rule
change will facilitate its own and its
Clearing Participants’ mandatory
compliance with CFTC Regulation
45.3 20 and 45.4.21 ICC believes that the
proposed rule change is consistent with
the requirements of the Exchange Act
and the rules and regulations
thereunder applicable to ICC, in
particular with Section 17A(b)(3)(F),
because facilitating clearing members’
reporting obligations promotes the
prompt and accurate clearance and
settlement of securities transactions and
the safeguarding of securities and funds,
and compliance with the CFTC’s
regulations facilitates the protection of
investors and the public interest. In
addition, ICC notes that the proposed
change is limited to ICC’s business as a
derivatives clearing organization and
therefore does not significantly affect
any securities clearing operations of the
clearing agency or any related rights or
15 17
CFR 45.9.
U.S.C. 78q–1.
17 15 U.S.C. 78q–1(b)(3)(F).
18 17 CFR 45.3.
19 17 CFR 45.4.
20 17 CFR 45.3.
21 17 CFR 45.4.
16 15
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obligations of the clearing agency or
persons using such service. For these
reasons, ICC believes the proposed rule
is consistent with the requirements of
Section 17A(b)(3)(F) of the Exchange
Act.22
(B) Clearing Agency’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) Clearing Agency’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. 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 Exchange
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–2013–05 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–2013–05. 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 the
filing also will be available for
inspection and copying at the principal
office of ICC.
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–2013–05 and should
be submitted on or before May 6, 2013.
IV. Commission’s Findings and Order
Granting Accelerated Approval of the
Proposed Rule Change
Section 19(b)(2)(C) of the Exchange
Act 23 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
Exchange Act and the rules and
regulations thereunder applicable to
such organization. The Commission
finds that the proposed rule change is
consistent with the requirements of the
Exchange Act, in particular, the
requirements of Section 17A of the
Exchange Act, and the rules and
regulations thereunder applicable to
ICC.24 Specifically, the Commission
finds that the proposed rule change is
consistent with Section 17A(b)(3)(F) of
the Exchange Act,25 which 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,
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, and to protect
investors and the public interest.
Based on ICC’s representations, the
Commission understands that the
proposed rule change is designed to
codify in ICC’s Rules the way in which
ICC intends to comply with certain of
the CFTC’s swap data reporting rules
and to facilitate its Clearing
Participants’ compliance with the same.
The Commission finds that, by
facilitating compliance with the swap
data reporting requirements of another
23 15
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1.
25 15 U.S.C. 78q–1(b)(3)(F).
24 15
22 15
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regulator, the proposed rule change is
consistent with promoting the prompt
and accurate clearance and settlement of
derivative agreements, contracts, and
transactions, assuring the safeguarding
of securities and funds which are in the
custody or control of the clearing agency
or for which it is responsible, and
protecting investors and the public
interest.
The Commission is mindful of the
CFTC’s jurisdiction respecting swap
data reporting and swap data
repositories under the Dodd-Frank Wall
Street Reform and Consumer Protection
Act of 2010 (‘‘Dodd-Frank Act’’).26 The
proposed rule change, which is limited
to ICC’s business as a derivatives
clearing organization and does not
significantly affect any securities
clearing operations of the clearing
agency or any rights or obligations of the
clearing agency with respect to
securities clearing or persons using such
securities-clearing service,27 applies
only to swaps, which are regulated by
the CFTC under the CEA. In this regard,
the Commission notes that section
5b(c)(2)(N) of the CEA requires that
‘‘[u]nless necessary or appropriate to
achieve the purposes of [the CEA], a
derivatives clearing organization shall
not—(i) adopt any rule or take any
action that results in any unreasonable
restraint of trade; or (ii) impose any
material anticompetitive burden.’’ 28
Section 17A(b)(3)(I) of the Exchange
Act, by contrast, requires that ‘‘[t]he
rules of the clearing agency do not
impose any burden on competition not
necessary or appropriate in furtherance
of the purposes of [the Exchange
Act].’’ 29 To the extent that the Exchange
Act provisions on competition apply to
swaps-related activity, the Commission
finds that the proposed rule change does
26 Public Law 111–203, 124 Stat. 1376 (2010).
Title VII of the Dodd-Frank Act gives the CFTC
regulatory authority over swaps, including the
authority to adopt rules governing SDRs and swap
reporting. See, e.g., Pub. L. No. 111–203, § 727.
Similarly, Title VII gives the SEC regulatory
authority over security-based swaps and the
authority to adopt rules governing security-based
swap data repositories and security-based swap
reporting. See, e.g., Pub. L. No. 111–203, § 763(i).
27 Cf. Amendment to Rule Filing Requirements for
Dually-Registered Clearing Agencies, Securities
Exchange Act Rel. No. 69284 (Apr. 3, 2013), 78 FR
21046 (Apr. 9, 2013) (amending the Commission’s
rule filing process in connection with proposed rule
changes that primarily affect a registered clearing
agency’s clearing operations with respect to
products that are not securities and that do not
significantly affect any securities clearing
operations or any rights or obligations of the
clearing agency with respect to securities clearing
or persons using such securities service; effective 60
days from forthcoming publication in the Federal
Register).
28 7 U.S.C. 7a–1(c)(2)(N).
29 15 U.S.C. 78q–1(b)(3)(I).
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not impose any burden on competition
not necessary or appropriate in
furtherance of the purposes of the
Exchange Act.30 In making this
determination, the Commission is
mindful of the CFTC’s jurisdiction over
swap activities, and the Commission
could draw a different conclusion about
a similar proposal if it applied to
security-based swap activity instead of
swap activity.
In its filing, ICC requested that the
Commission grant accelerated approval
of the proposed rule change under
Section 19(b)(2)(C)(iii) of the Exchange
Act.31 Under Section 19(b)(2)(C)(iii) of
the Exchange Act,32 the Commission
may grant accelerated approval of a
proposed rule change if the Commission
finds good cause for doing so. ICC
believes that accelerated approval is
warranted because the proposed rule
change will assist swap dealers’
mandatory compliance with CFTC
Regulation 45.3 33 and 45.4,34 which
was required by February 28, 2013. ICC
states that the proposed rule change
does not require any operational
changes, as ICC currently complies with
the CFTC’s Regulations relating to the
regulatory reporting of swap data by
reporting to IntercontinentalExchange,
Inc.’s SDR, selected by ICC. ICC notes
that the proposed change is limited to
ICC’s business as a derivatives clearing
organization and therefore does not
significantly affect any securities
clearing operations of the clearing
agency or any related rights or
obligations of the clearing agency or
persons using such service. ICC has
stated that, in its view, the proposed
changes do not raise any issues that
would require a lengthier review
process under Section 19(b) of the
Exchange Act,35 and ICC does not
believe the market would benefit from
delaying implementation of the
proposed rule changes.
The Commission finds good cause,
pursuant to Section 19(b)(2)(C)(iii) of
the Exchange Act,36 for approving the
proposed rule change on an accelerated
basis, prior to the 30th day after the date
of publication of notice in the Federal
Register, because (i) the proposed rule
change is limited to ICC’s business as a
derivatives clearing organization and
does not significantly affect any
30 In approving these proposed rule changes, the
Commission has considered the proposed rule
change’s impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
31 15 U.S.C. 78s(b)(2)(C)(iii).
32 15 U.S.C. 78s(b)(2)(C)(iii).
33 17 CFR 45.3.
34 17 CFR 45.4.
35 15 U.S.C. 78s(b).
36 15 U.S.C. 78s(b)(2)(C)(iii).
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securities clearing operations of the
clearing agency or any rights or
obligations of the clearing agency with
respect to securities clearing or persons
using such securities-clearing service;
and (ii) the activity relating to the nonsecurities clearing operations of the
clearing agency for which the clearing
agency is seeking approval is subject to
regulation by another federal
regulator.37
The Commission notes that ICC also
has submitted ICC Rule 211 to the CFTC
for self-certification pursuant to Section
5c(c)(1) of the Commodity Exchange Act
(‘‘CEA’’) 38 and CFTC Regulation 40.6.39
In connection with ICC’s submission,
the CFTC received a petition for the stay
of ICC’s self-certification of ICC Rule
211 from the Depository Trust &
Clearing Corporation (‘‘DTCC’’), in
conjunction with DTCC Data Repository
(U.S.) LLC.40 In its submission to the
CFTC, ICC also made reference to the
CFTC’s comment files relating to the
submission by the Chicago Mercantile
Exchange Inc. (‘‘CME’’) of CME Rule
1001 to the CFTC and ‘‘relevant
references within the Statement of the
[CFTC] granting approval of the CME’s
Rule 1001 submission.’’ 41
As noted above, in its consideration
and approval of the proposed rule
change, the Commission is mindful of
the CFTC’s jurisdiction respecting swap
data reporting and swap data
repositories under the Dodd-Frank
Act.42 The Commission’s approval of
the proposed rule change in no way
constitutes a determination or finding
by the Commission that the proposed
rule change complies with or is not
inconsistent with the CEA or the rules
and regulation thereunder, which are
determinations within the purview of
the CFTC. The Commission’s approval
is limited to findings under the
Exchange Act and the rules and
regulations thereunder in effect on the
date hereof and represents neither
agreement nor disagreement with the
CFTC’s analysis and determinations in
connection with its Statement
approving CME Rule 1001 or other
actions to-date respecting CME’s or
37 See
supra note 27.
U.S.C. 7a-2(c)(5).
39 17 CFR 40.6.
40 Letter to Ms. Melissa Jurgens, CFTC, from Larry
E. Thompson, General Counsel, DTCC, dated March
26, 2013, available at https://www.cftc.gov/stellent/
groups/public/@rulesandproducts/documents/
ifdocs/dtcccommentltr032613.pdf.
41 ICC Rule Submission Re: SDR Reporting Rule
Certification Pursuant to Section 5c(c)(1) of the CEA
and [CFTC] Regulation 40.6, dated March 22, 2013,
available at https://www.cftc.gov/stellent/groups/
public/@rulesandproducts/documents/ifdocs/
rul032213icc001.pdf.
42 See supra note 26.
38 7
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ICC’s rules relating to swap data
reporting. Furthermore, the
Commission’s approval of the proposed
rule change in no way limits or
precludes any future actions by the
Commission, including pending
rulemakings 43 or proposed rule
changes, in connection with securitybased swaps.
V. Conclusion
It is therefore ordered pursuant to
Section 19(b)(2) of the Exchange Act 44
that the proposed rule change (SR–ICC–
2013–05), as modified by Amendment
No. 1, be, and hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.45
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013–08727 Filed 4–12–13; 8:45 am]
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69351; File No. SR–Phlx–
2013–35]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Pricing for Mini Options
April 9, 2013.
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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
26, 2013, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) 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
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
43 See, e.g., Regulation SBSR—Reporting and
Dissemination of Security-Based Swap Information,
Securities Exchange Act Rel. No. 63346 (Nov. 19,
2010), 75 FR 75208 (Dec. 2, 2010); Security-Based
Swap Data Repository Registration, Duties, and
Core Principles, Securities Exchange Act Release
No. 63347 (Nov. 19, 2010), 75 FR 77306 (Dec. 10,
2010), corrected at 75 FR 79320 (Dec. 20, 2010) and
76 FR 2287 (Jan. 13, 2011).
44 15 U.S.C. 78s(b)(2).
45 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
its Pricing Schedule by adding Section
A, entitled ‘‘Mini Options Fees,’’ and by
redesignating existing Section A as
Section B.
The text of the proposed rule change
is provided in Exhibit 5. The text of the
proposed rule change is also available
on the Exchange’s Web site at https://
nasdaqomxphlx.cchwallstreet.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
While changes to the Pricing
Schedule pursuant to this proposal are
effective upon filing, the Exchange has
designated that they become operative
on March 28, 2013.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to set forth in new Section A
of the Pricing Schedule the applicability
of various existing fees, rebates, and
caps to Mini Options, and specifically to
establish that transaction fees with
respect to Mini Options will be set at
$0.00. Existing Section A, Customer
Rebate Program, will be redesignated as
Section B.
The Exchange represented in its filing
establishing Mini Options (the ‘‘Mini
Options Listing Filing’’) that ‘‘the
current Pricing Schedule will not apply
to the trading of mini-option contracts’’
and that ‘‘[t]he Exchange will not
commence trading of mini-option
contracts until specific fees for minioptions contracts trading have been
filed with the Commission.’’ 3 The
3 See SR–Phlx–2012–126, page 8. See also
Securities Exchange Act Release No. 68132
(November 1, 2012), 77 FR 66904 (November 7,
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22353
purpose of the proposed new Section A
is to adopt the fees that are specific to
Mini Options, as provided for in the
Mini Options Listing Filing.
New Section A will appear after the
Preface section of the Pricing Schedule
which contains definitions that apply to
the entire Pricing Schedule, including
new Section A. Except where different
treatment is specified for Mini Options
in Section A, the rest of the Pricing
Schedule will apply to Mini Options in
the same way it applies to all other
options. For example, a Mini Options
class will count as an options class
assignment for purposes of determining
the level of Streaming Quote Trader
Fees and Remote Streaming Quote
Trader Fees in Section VI. Cross
references to Section A in the Table of
Contents and Section IV.A, PIXL
Pricing, will be updated to refer to
Section B, and the Table of Contents
will be updated to refer to Mini Options
as new Section A.
Applicable Symbols. Proposed new
Section A identifies the Mini Options
symbols as AAPL7, AMZN7, GLD7,
GOOG7 and SPY7. Accordingly, new
Section A will apply exclusively to
these new symbols.
Transaction Fees. New Section A
provides for a ‘‘Mini Options
Transaction Fee—Electronic’’ and for a
‘‘Mini-Options Transaction Fee—Floor
and QCC’’, both of which will apply in
the Customer, Professional, Specialist
and Market Maker, Broker-Dealer and
Firm fee categories.4 In each case, the
Exchange is currently setting these fees
at $0.00 but may in the future file
proposed rule changes to amend the
transaction fee level in one or more
categories. The Exchange is establishing
the separate Section A Pricing Schedule
section for Mini Options transaction
fees in order to facilitate differentiation
in the future between Mini Options
transaction fees and other options
transaction fees.
PIXL Executions. The new Section A
transaction fees will apply to PIXL
executions in Mini Options rather than
the PIXL Pricing fees set forth in Section
IV.A.5
Payment for Order Flow. Pursuant to
new Section A, Payment for Order Flow
Fees set forth in Section II of the Pricing
2012) (Notice of Filing and Immediate Effectiveness
of Proposed Rule Change To List and Trade Option
Contracts Overlying 10 Shares of Certain
Securities).
4 Transaction fees for options other than Mini
Options are currently found in Sections I through
III of the Pricing Schedule.
5 PIXL is the Exchange’s price improvement
mechanism known as Price Improvement XL or
(PIXLSM). See Rule 1080(n) and Section IV of the
Pricing Schedule.
E:\FR\FM\15APN1.SGM
15APN1
]]>Agencies
[Federal Register Volume 78, Number 72 (Monday, April 15, 2013)]
[Notices]
[Pages 22350-22353]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08727]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69356; File No. SR-ICC-2013-05]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing and Order Granting Accelerated Approval of a Proposed Rule
Change, as Modified by Amendment No. 1, Related to Regulatory Reporting
of Swap Data
April 9, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act''),\1\ and Rule 19b-4,\2\ notice is hereby given that
on March 25, 2013, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change, as modified by Amendment No. 1,\3\ and as described in Items I
and II below, which Items have been substantially prepared by the
clearing agency. The Commission is publishing this notice and order to
solicit comments on the proposed rule change from interested persons
and to approve the proposed rule change on an accelerated basis.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ ICC filed Amendment No. 1 to ICC-2013-05 on April 8, 2013.
In Amendment No. 1, ICC amended Form 19b-4 and Exhibit 1 to include
references to Commodity Futures Trading Commission Regulation 45.3.
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
ICC proposes to add, in Chapter 2 of the ICC Rules, Rule 211
(Regulatory Reporting of Swap Data). ICC proposes to add Rule 211 in
order to implement swap data repository (``SDR'') reporting (``SDR
Reporting'') consistent with the Commodity Futures Trading Commission
(``CFTC'') Regulations relating to the regulatory reporting of swap
data, specifically Part 45 of CFTC Regulations (``Part 45'').\4\ ICC
currently complies with the CFTC's Regulations relating to the
regulatory reporting of swap data by reporting to
IntercontinentalExchange, Inc.'s SDR, selected by ICC. In order to
codify ICC's practice of reporting relevant Part 45 data to the SDR
selected by ICC, which is intended to meet ICC's and its Clearing
Participants' swap data reporting obligations under Part 45, ICC
proposes to add, in Chapter 2 of the ICC Rules, Rule 211 (Regulatory
Reporting of Swap Data).
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\4\ 17 CFR 45.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, the clearing agency 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 III below. The clearing agency has prepared
summaries, set forth in sections A, B, and C below, of the most
significant aspects of such statements.\5\
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\5\ The Commission has modified the text of the summaries
prepared by the clearing agency.
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(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
ICC proposes to add, in Chapter 2 of the ICC Rules, Rule 211 in
order to implement SDR Reporting consistent with CFTC Regulations
45.3,\6\ 45.4(b),\7\ and 45.9.\8\ Proposed ICC Rule 211 states that for
the purposes of complying with applicable CFTC rules governing the
regulatory reporting of swaps, ICC will report all creation and
continuation data to IntercontinentalExchange, Inc.'s SDR. In addition,
proposed ICC Rule 211 provides that, upon the request of an ICC
Clearing Participant that is a counterparty to a swap cleared at ICC,
ICC shall provide the same creation and continuation data to the SDR
selected by the Clearing Participant.
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\6\ 17 CFR 45.3.
\7\ 17 CFR 45.4(b).
\8\ 17 CFR 45.9.
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Proposed Rule 211 is consistent with the CFTC's Regulation 45.3 \9\
and 45.4(b),\10\ which requires that creation and continuation data
must be reported by both the derivatives clearing organization and the
reporting counterparty. ICC currently complies with the CFTC's
Regulation 45.3 \11\ and 45.4(b) \12\ by reporting swap data to
IntercontinentalExchange, Inc.'s SDR selected by ICC. In order to
codify ICC's practice of reporting relevant Part 45 data to the SDR
selected by ICC, ICC proposes to add, in Chapter 2 of the ICC Rules,
Rule 211 (Regulatory Reporting of Swap Data).
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\9\ 17 CFR 45.3.
\10\ 17 CFR 45.4(b).
\11\ 17 CFR 45.3.
\12\ 17 CFR 45.4(b).
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The addition of ICC Rule 211 also is in response to swap dealers'
mandatory compliance with CFTC Regulation 45.3 \13\ and 45.4,\14\ which
was required by February 28, 2013. ICC believes that proposed ICC Rule
211 is also consistent
[[Page 22351]]
with the CFTC's Regulation 45.9,\15\ which provides that swap
counterparties required by Part 45 to report swap creation or
continuation data may contract with third-party service providers to
facilitate reporting. Proposed ICC Rule 211 ensures that ICC, in the
capacity of a third-party service provider, will be able to report
required swap creation and continuation data on behalf of ICC's
Clearing Participants, in compliance with the Clearing Participants'
reporting obligations under CFTC's swap data reporting Regulations.
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\13\ 17 CFR 45.3.
\14\ 17 CFR 45.4.
\15\ 17 CFR 45.9.
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ICC believes that proposed ICC Rule 211 is consistent with the
requirements of Section 17A of the Exchange Act \16\ and the rules and
regulations thereunder applicable to it. Specifically, ICC believes the
proposed rule is consistent with Section 17A(b)(3)(F) of the Exchange
Act,\17\ which 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, 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, and to protect investors and the public interest. As a
derivatives clearing organization registered with the CFTC, ICC must
comply with CFTC Regulations, including CFTC Regulation 45.3 \18\ and
45.4.\19\ ICC believes this proposed rule change will facilitate its
own and its Clearing Participants' mandatory compliance with CFTC
Regulation 45.3 \20\ and 45.4.\21\ ICC believes that the proposed rule
change is consistent with the requirements of the Exchange Act and the
rules and regulations thereunder applicable to ICC, in particular with
Section 17A(b)(3)(F), because facilitating clearing members' reporting
obligations promotes the prompt and accurate clearance and settlement
of securities transactions and the safeguarding of securities and
funds, and compliance with the CFTC's regulations facilitates the
protection of investors and the public interest. In addition, ICC notes
that the proposed change is limited to ICC's business as a derivatives
clearing organization and therefore does not significantly affect any
securities clearing operations of the clearing agency or any related
rights or obligations of the clearing agency or persons using such
service. For these reasons, ICC believes the proposed rule is
consistent with the requirements of Section 17A(b)(3)(F) of the
Exchange Act.\22\
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\16\ 15 U.S.C. 78q-1.
\17\ 15 U.S.C. 78q-1(b)(3)(F).
\18\ 17 CFR 45.3.
\19\ 17 CFR 45.4.
\20\ 17 CFR 45.3.
\21\ 17 CFR 45.4.
\22\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Clearing Agency'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) Clearing Agency'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. 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 Exchange 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-2013-05 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-2013-05. 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 the filing also will be available
for inspection and copying at the principal office of ICC.
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-2013-05
and should be submitted on or before May 6, 2013.
IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change
Section 19(b)(2)(C) of the Exchange Act \23\ 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 Exchange Act and the rules and regulations
thereunder applicable to such organization. The Commission finds that
the proposed rule change is consistent with the requirements of the
Exchange Act, in particular, the requirements of Section 17A of the
Exchange Act, and the rules and regulations thereunder applicable to
ICC.\24\ Specifically, the Commission finds that the proposed rule
change is consistent with Section 17A(b)(3)(F) of the Exchange Act,\25\
which 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, 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, and to protect
investors and the public interest.
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\23\ 15 U.S.C. 78s(b)(2)(C).
\24\ 15 U.S.C. 78q-1.
\25\ 15 U.S.C. 78q-1(b)(3)(F).
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Based on ICC's representations, the Commission understands that the
proposed rule change is designed to codify in ICC's Rules the way in
which ICC intends to comply with certain of the CFTC's swap data
reporting rules and to facilitate its Clearing Participants' compliance
with the same. The Commission finds that, by facilitating compliance
with the swap data reporting requirements of another
[[Page 22352]]
regulator, the proposed rule change is consistent with promoting the
prompt and accurate clearance and settlement of derivative agreements,
contracts, and transactions, assuring the safeguarding of securities
and funds which are in the custody or control of the clearing agency or
for which it is responsible, and protecting investors and the public
interest.
The Commission is mindful of the CFTC's jurisdiction respecting
swap data reporting and swap data repositories under the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010 (``Dodd-Frank
Act'').\26\ The proposed rule change, which is limited to ICC's
business as a derivatives clearing organization and does not
significantly affect any securities clearing operations of the clearing
agency or any rights or obligations of the clearing agency with respect
to securities clearing or persons using such securities-clearing
service,\27\ applies only to swaps, which are regulated by the CFTC
under the CEA. In this regard, the Commission notes that section
5b(c)(2)(N) of the CEA requires that ``[u]nless necessary or
appropriate to achieve the purposes of [the CEA], a derivatives
clearing organization shall not--(i) adopt any rule or take any action
that results in any unreasonable restraint of trade; or (ii) impose any
material anticompetitive burden.'' \28\ Section 17A(b)(3)(I) of the
Exchange Act, by contrast, requires that ``[t]he rules of the clearing
agency do not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of [the Exchange Act].''
\29\ To the extent that the Exchange Act provisions on competition
apply to swaps-related activity, the Commission finds that the proposed
rule change does not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Exchange Act.\30\ In
making this determination, the Commission is mindful of the CFTC's
jurisdiction over swap activities, and the Commission could draw a
different conclusion about a similar proposal if it applied to
security-based swap activity instead of swap activity.
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\26\ Public Law 111-203, 124 Stat. 1376 (2010). Title VII of the
Dodd-Frank Act gives the CFTC regulatory authority over swaps,
including the authority to adopt rules governing SDRs and swap
reporting. See, e.g., Pub. L. No. 111-203, Sec. 727. Similarly,
Title VII gives the SEC regulatory authority over security-based
swaps and the authority to adopt rules governing security-based swap
data repositories and security-based swap reporting. See, e.g., Pub.
L. No. 111-203, Sec. 763(i).
\27\ Cf. Amendment to Rule Filing Requirements for Dually-
Registered Clearing Agencies, Securities Exchange Act Rel. No. 69284
(Apr. 3, 2013), 78 FR 21046 (Apr. 9, 2013) (amending the
Commission's rule filing process in connection with proposed rule
changes that primarily affect a registered clearing agency's
clearing operations with respect to products that are not securities
and that do not significantly affect any securities clearing
operations or any rights or obligations of the clearing agency with
respect to securities clearing or persons using such securities
service; effective 60 days from forthcoming publication in the
Federal Register).
\28\ 7 U.S.C. 7a-1(c)(2)(N).
\29\ 15 U.S.C. 78q-1(b)(3)(I).
\30\ In approving these proposed rule changes, the Commission
has considered the proposed rule change's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
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In its filing, ICC requested that the Commission grant accelerated
approval of the proposed rule change under Section 19(b)(2)(C)(iii) of
the Exchange Act.\31\ Under Section 19(b)(2)(C)(iii) of the Exchange
Act,\32\ the Commission may grant accelerated approval of a proposed
rule change if the Commission finds good cause for doing so. ICC
believes that accelerated approval is warranted because the proposed
rule change will assist swap dealers' mandatory compliance with CFTC
Regulation 45.3 \33\ and 45.4,\34\ which was required by February 28,
2013. ICC states that the proposed rule change does not require any
operational changes, as ICC currently complies with the CFTC's
Regulations relating to the regulatory reporting of swap data by
reporting to IntercontinentalExchange, Inc.'s SDR, selected by ICC. ICC
notes that the proposed change is limited to ICC's business as a
derivatives clearing organization and therefore does not significantly
affect any securities clearing operations of the clearing agency or any
related rights or obligations of the clearing agency or persons using
such service. ICC has stated that, in its view, the proposed changes do
not raise any issues that would require a lengthier review process
under Section 19(b) of the Exchange Act,\35\ and ICC does not believe
the market would benefit from delaying implementation of the proposed
rule changes.
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\31\ 15 U.S.C. 78s(b)(2)(C)(iii).
\32\ 15 U.S.C. 78s(b)(2)(C)(iii).
\33\ 17 CFR 45.3.
\34\ 17 CFR 45.4.
\35\ 15 U.S.C. 78s(b).
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The Commission finds good cause, pursuant to Section
19(b)(2)(C)(iii) of the Exchange Act,\36\ for approving the proposed
rule change on an accelerated basis, prior to the 30th day after the
date of publication of notice in the Federal Register, because (i) the
proposed rule change is limited to ICC's business as a derivatives
clearing organization and does not significantly affect any securities
clearing operations of the clearing agency or any rights or obligations
of the clearing agency with respect to securities clearing or persons
using such securities-clearing service; and (ii) the activity relating
to the non-securities clearing operations of the clearing agency for
which the clearing agency is seeking approval is subject to regulation
by another federal regulator.\37\
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\36\ 15 U.S.C. 78s(b)(2)(C)(iii).
\37\ See supra note 27.
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The Commission notes that ICC also has submitted ICC Rule 211 to
the CFTC for self-certification pursuant to Section 5c(c)(1) of the
Commodity Exchange Act (``CEA'') \38\ and CFTC Regulation 40.6.\39\ In
connection with ICC's submission, the CFTC received a petition for the
stay of ICC's self-certification of ICC Rule 211 from the Depository
Trust & Clearing Corporation (``DTCC''), in conjunction with DTCC Data
Repository (U.S.) LLC.\40\ In its submission to the CFTC, ICC also made
reference to the CFTC's comment files relating to the submission by the
Chicago Mercantile Exchange Inc. (``CME'') of CME Rule 1001 to the CFTC
and ``relevant references within the Statement of the [CFTC] granting
approval of the CME's Rule 1001 submission.'' \41\
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\38\ 7 U.S.C. 7a-2(c)(5).
\39\ 17 CFR 40.6.
\40\ Letter to Ms. Melissa Jurgens, CFTC, from Larry E.
Thompson, General Counsel, DTCC, dated March 26, 2013, available at
https://www.cftc.gov/stellent/groups/public/@rulesandproducts/documents/ifdocs/dtcccommentltr032613.pdf.
\41\ ICC Rule Submission Re: SDR Reporting Rule Certification
Pursuant to Section 5c(c)(1) of the CEA and [CFTC] Regulation 40.6,
dated March 22, 2013, available at https://www.cftc.gov/stellent/groups/public/@rulesandproducts/documents/ifdocs/rul032213icc001.pdf.
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As noted above, in its consideration and approval of the proposed
rule change, the Commission is mindful of the CFTC's jurisdiction
respecting swap data reporting and swap data repositories under the
Dodd-Frank Act.\42\ The Commission's approval of the proposed rule
change in no way constitutes a determination or finding by the
Commission that the proposed rule change complies with or is not
inconsistent with the CEA or the rules and regulation thereunder, which
are determinations within the purview of the CFTC. The Commission's
approval is limited to findings under the Exchange Act and the rules
and regulations thereunder in effect on the date hereof and represents
neither agreement nor disagreement with the CFTC's analysis and
determinations in connection with its Statement approving CME Rule 1001
or other actions to-date respecting CME's or
[[Page 22353]]
ICC's rules relating to swap data reporting. Furthermore, the
Commission's approval of the proposed rule change in no way limits or
precludes any future actions by the Commission, including pending
rulemakings \43\ or proposed rule changes, in connection with security-
based swaps.
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\42\ See supra note 26.
\43\ See, e.g., Regulation SBSR--Reporting and Dissemination of
Security-Based Swap Information, Securities Exchange Act Rel. No.
63346 (Nov. 19, 2010), 75 FR 75208 (Dec. 2, 2010); Security-Based
Swap Data Repository Registration, Duties, and Core Principles,
Securities Exchange Act Release No. 63347 (Nov. 19, 2010), 75 FR
77306 (Dec. 10, 2010), corrected at 75 FR 79320 (Dec. 20, 2010) and
76 FR 2287 (Jan. 13, 2011).
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V. Conclusion
It is therefore ordered pursuant to Section 19(b)(2) of the
Exchange Act \44\ that the proposed rule change (SR-ICC-2013-05), as
modified by Amendment No. 1, be, and hereby is, approved on an
accelerated basis.
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\44\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\45\
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\45\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-08727 Filed 4-12-13; 8:45 am]
BILLING CODE P
