Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change to Add Rules Related to the Clearing of MCDX Index CDS Contracts and Make Conforming Changes to Existing Rules, 68480-68482 [2013-27201]
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Federal Register / Vol. 78, No. 220 / Thursday, November 14, 2013 / Notices
‘‘Antarctica’’ and inserts ‘‘the Polar
Regions’’) furnishes information to the
NSF regarding the physical, dental, and
mental status for all individuals (except
uniformed service personnel) who
anticipate deploying to Antarctica under
the auspices of the United States
Antarctic Program or to certain regions
of the Arctic sponsored by the
NSF/GEO/Division of Polar Programs.
The information is used to determine
whether an individual is physically and
mentally suited to endure the extreme
hardships imposed by the Arctic and
Antarctic continents, while also
performing specific duties as specified
by their employers.
Respondents: All non-uniformed
personnel planning to deploy to U.S.
stations in the Antarctic or to specified
regions of the Arctic that are sponsored
by the National Science Foundation’s
Division of Polar Programs.
The number of annual respondents:
3,200 to the Antarctic and 100 to the
Arctic.
Estimated Total Annual Burden on
Respondents: 33,000 hours.
Frequency of Responses: This form is
submitted upon an individual’s first
deployment to Antarctica (below 60°
South) or to specified regions of the
Arctic and annually thereafter for the
duration of the individual’s
deployments.
Dated: November 8, 2013.
Suzanne H. Plimpton,
Reports Clearance Officer, National Science
Foundation.
[FR Doc. 2013–27257 Filed 11–13–13; 8:45 am]
NATIONAL SCIENCE FOUNDATION
TKELleY on DSK3SPTVN1PROD with NOTICES
National Science Board
The National Science Board’s ad hoc
Committee on Honorary Awards,
pursuant to NSF regulations (45 CFR
part 614), the National Science
Foundation Act, as amended (42 U.S.C.
1862n–5), and the Government in the
Sunshine Act (5 U.S.C. 552b), hereby
gives notice in regard to the scheduling
of a meeting for the transaction of
National Science Board business, as
follows:
Date and Time: Monday, November
18, 2013 at 11:00 a.m. EST.
Subject Matter: Consideration of
nominations for honorary awards.
Status: Closed.
This meeting will be held by
teleconference originating at the
National Science Board Office, National
Science Foundation, 4201Wilson Blvd.,
Arlington, VA 22230.
19:20 Nov 13, 2013
Jkt 232001
Ann Bushmiller,
NSB Senior Legal Counsel.
[FR Doc. 2013–27199 Filed 11–13–13; 8:45 am]
BILLING CODE 7555–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70826; File No. SR–ICC–
2013–08]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing of
Proposed Rule Change to Add Rules
Related to the Clearing of MCDX Index
CDS Contracts and Make Conforming
Changes to Existing Rules
November 7, 2013.
NATIONAL SCIENCE FOUNDATION
Sunshine Act Meetings; National
Science Board
The National Science Board’s Task
Force on Administrative Burdens,
pursuant to NSF regulations (45 CFR
Part 614), the National Science
Foundation Act, as amended (42 U.S.C.
1862n–5), and the Government in the
Sunshine Act (5 U.S.C. 552b), hereby
gives notice in regard to the scheduling
of a teleconference for the transaction of
National Science Board business and
other matters specified, as follows:
& TIME: Wednesday, December 11,
2013, 6:00 p.m.–7:00 p.m. e.s.t.
DATE
SUBJECT MATTER: A discussion of the
results of the Task Force’s Request for
Information, comment from agencies
and organizations, and the content and
timeline of the final report and
recommendations.
Open
This meeting will be held by
teleconference. A public listening line
will be available. Members of the public
must contact the Board Office [call 703–
292–7000 or send an email message to
nationalsciencebrd@nsf.gov] at least 24
hours prior to the teleconference for the
public listening number. Please refer to
the National Science Board Web site
www.nsf.gov/nsb for additional
information and schedule updates (time,
place, subject matter or status of
meeting) which may be found at
https://www.nsf.gov/nsb/notices. Point of
contact for this meeting is Lisa Nichols
or John Veysey.
STATUS:
BILLING CODE 7555–01–P
VerDate Mar<15>2010
Please refer to the National Science
Board Web site (www.nsf.gov/nsb) for
information or schedule updates, or
contact: Nadine Lymn, National Science
Foundation, 4201 Wilson Blvd.,
Arlington, VA 22230. Telephone: (703)
292–7000.
Ann Bushmiller,
Senior Counsel to the National Science Board.
[FR Doc. 2013–27384 Filed 11–12–13; 4:15 pm]
BILLING CODE 7555–01–P
PO 00000
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 October
25, 2013, ICE Clear Credit LLC (‘‘ICC’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared primarily by ICC.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to adopt new rules that will
provide the basis for ICC to clear
additional credit default swap contracts.
Specifically, ICC is proposing to amend
Chapter 26 of its rules to add Section
26H to provide for the clearance of the
MCDX Untranched Contracts (‘‘MCDX
Contracts’’). MCDX Contracts are credit
default swap (‘‘CDS’’) contracts that
reference an index of municipal issuers.
As discussed in more detail in Item
II.A below, Section 26H (MCDX
Untranched Contracts) provides for the
definitions and certain specific contract
terms for cleared MCDX Contracts.
Conforming changes are also made to
the definition of ‘‘CDS Restructuring
Rules’’ in Chapter 20 (Credit Default
Swaps) and to Rule 2101–02(a)(iii) (Role
of the Regional CDS Committees) to
clarify cross-references to the CDS
Restructuring Rules set forth in Section
26E of the Rules. Section 26E (CDS
Restructuring Rules) is modified to
provide that it will not apply to MCDX
Contracts (as such contracts are
automatically triggered in the event of a
restructuring credit event, as discussed
below).
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 78, No. 220 / Thursday, November 14, 2013 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, ICC
included statements concerning the
purpose of and basis for the proposed
rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. ICC has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of these statements.
TKELleY on DSK3SPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
ICC has identified MCDX Contracts as
a product that has become increasingly
important for market participants to
manage risk and express views with
respect to municipal issuer credit. ICC’s
clearance of MCDX Contracts will
facilitate the prompt and accurate
settlement of swaps and contribute to
the safeguarding of securities and funds
associated with swap transactions.
MCDX Contracts have similar terms to
the CDX North American Index CDS
contracts (‘‘CDX.NA Contracts’’)
currently cleared by ICC and governed
by Section 26A of the ICC rules.
Accordingly, the proposed rules found
in Section 26H largely mirror the ICC
rules for CDX.NA Contracts in Section
26A, with certain modifications that
reflect the underlying reference entities
(municipal issuer reference entities
instead of corporate reference entities)
and differences in terms and market
conventions between MCDX Contracts
and CDX.NA Contracts.
The MCDX Contracts reference the
MCDX Index, the current series of
which consists of 50 municipal issuers.
MCDX Contracts, consistent with
market convention and widely used
standard terms documentation, can be
triggered by credit events for failure to
pay or restructuring (by contrast to the
credit events of failure to pay and
bankruptcy applicable to the CDX.NA
Contracts). In the event of a
restructuring, all outstanding positions
are automatically triggered. Thus, from
a clearing perspective, restructuring
credit events would be handled in the
same way as a failure to pay credit event
(and would not require the additional
restructuring triggering procedures that
are used for certain corporate and
sovereign CDS contracts). MCDX
Contracts will only be denominated in
U.S. dollars.
VerDate Mar<15>2010
19:20 Nov 13, 2013
Jkt 232001
Rule 26H–102 (Definitions) sets forth
the definitions used for the MCDX
Contract Rules. An ‘‘Eligible MCDX
Untranched Index’’ is defined as ‘‘each
particular series and version of a MCDX
index or sub-index, as published by the
MCDX Untranched Publisher,
determined by ICE Clear Credit to be
eligible and included in the List of
Eligible MCDX Untranched Indexes.’’
‘‘MCDX Untranched Terms
Supplement’’ refers to the market
standard form of documentation used
for credit default swaps on the MCDX
index, which is incorporated by
reference into the contract specifications
in Section 26H. The remaining
definitions are substantially the same as
the definitions found in ICC Section
26A, other than certain conforming
changes.
Rules 26H–309 (Acceptance of MCDX
Untranched Contracts by ICE Clear
Credit), 26H–315 (Terms of the Cleared
MCDX Untranched Contract), and 26H–
316 (Updating Index Version of
Fungible Contracts After a Credit Event
or a Succession Event; Updating
Relevant Untranched Standard Terms
Supplement) reflect or incorporate the
basic contract specifications for MCDX
Contracts and are substantially the same
as under ICC Section 26A for CDX.NA
Contracts. In addition to various nonsubstantive conforming changes,
proposed Rule 26H–317 (Terms of
MCDX Untranched Contracts) differs
from the corresponding Rule 26A–317
to reflect the fact that restructuring is a
credit event for the MCDX Contract.
(CDX.NA Contracts currently cleared by
ICC do not use the restructuring credit
event. However, unlike the case with
other corporate and sovereign CDS, in
the event of a restructuring for an MCDX
reference entity, all outstanding
positions are automatically triggered.
Thus, from a clearing perspective MCDX
restructuring events would be handled
in the same way as a failure to pay.)
Because of the automatic triggering
following a restructuring credit event,
the provisions of Section 26E of the
Rules are not necessary for MCDX
Contracts, and Section 26E is amended
to provide that it does not apply to
MCDX Contracts. A conforming change
is made to the definition of ‘‘CDS
Restructuring Rules’’ in Chapter 20
(Credit Default Swaps) to make
reference to the rules set forth in Section
26E (CDS Restructuring Rules) of the
Rules. In addition, Rule 2101–02(a)(iii)
(Role of the Regional CDS Committees)
is modified to make reference to the
CDS Restructuring Rules set forth in
Section 26E of the Rules.
PO 00000
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68481
Section 17(A)(b)(3)(F) of the Act 3
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. ICC believes
that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to ICC, in
particular, to Section 17(A)(b)(3)(F),
because ICC believes that the clearance
of MCDX Contracts will facilitate the
prompt and accurate settlement of
securities and contribute to the
safeguarding of securities and funds
associated with swap transactions in
ICC’s custody or control, or for which
ICC is responsible.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
MCDX Contracts will be available to
all ICC Participants for clearing. The
clearing of MCDX Contracts by ICC does
not preclude the offering of MCDX
Contracts for clearing by other market
participants. In addition, ICC does not
anticipate that accepting MCDX
Contracts for clearing will have any
adverse effect on the trading market for
the contract. Therefore, 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
ICC has consulted with its
Participants and non-member market
participants concerning the proposed
rule change. 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
3 15
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U.S.C. 78q–1(b)(3)(F).
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68482
Federal Register / Vol. 78, No. 220 / Thursday, November 14, 2013 / Notices
(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 rule-comments@
sec.gov. Please include File Number SR–
ICC–2013–08 on the subject line.
TKELleY on DSK3SPTVN1PROD with NOTICES
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–2013–08. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m.
Copies of such filings also will be
available for inspection and copying at
the principal office of ICE Clear Credit
and on ICE Clear Credit’s Web site at
https://www.theice.com/notices/
Notices.shtml?regulatoryFilings.
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–2013–08 and should
VerDate Mar<15>2010
19:20 Nov 13, 2013
Jkt 232001
be submitted on or before December 5,
2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.4
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–27201 Filed 11–13–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70829; File No. SR–
NASDAQ–2013–122]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Order
Granting Approval of Proposed Rule
Change To List and Trade Shares of
the First Trust High Income Fund of
First Trust Exchange-Traded Fund VI
November 7, 2013.
I. Introduction
On September 12, 2013, The
NASDAQ Stock Market LLC (‘‘Nasdaq’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and
Rule 19b–4 thereunder,2 a proposed rule
change to list and trade shares
(‘‘Shares’’) of the First Trust High
Income ETF (‘‘Fund’’) under Nasdaq
Rule 5735. The proposed rule change
was published for comment in the
Federal Register on September 26,
2013.3 The Commission received no
comments on the proposed rule change.
This order grants approval of the
proposed rule change.
II. Description of the Proposed Rule
Change
The Exchange proposes to list and
trade Shares of the Fund pursuant to
Nasdaq Rule 5735, which governs the
listing and trading of Managed Fund
Shares on the Exchange. The Shares will
be offered by First Trust ExchangeTraded Fund VI (‘‘Trust’’). The Trust is
registered with the Commission as an
investment company.4 The Fund is a
series of the Trust.
4 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 70460
(Sept. 20, 2013), 78 FR 59402 (Sept. 26, 2013)
(‘‘Notice’’).
4 The Trust has filed a registration statement on
Form N–1A (‘‘Registration Statement’’) with the
Commission. See Post-Effective Amendment No. 3
to Registration Statement on Form N–1A for the
Trust, dated Jan. 16, 2013 (File Nos. 333–182308
and 811–22717). In addition, the Commission has
issued an order granting certain exemptive relief to
1 15
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Frm 00073
Fmt 4703
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First Trust Advisors L.P. will be the
investment adviser (‘‘Adviser’’) to the
Fund. First Trust Portfolios L.P.
(‘‘Distributor’’) will be the principal
underwriter and distributor of the
Fund’s Shares. Brown Brothers
Harriman & Co. will act as the
administrator, accounting agent,
custodian and transfer agent to the
Fund.
The Exchange represents that the
Adviser is not a broker-dealer, but is
affiliated with the Distributor, a brokerdealer, and has implemented a fire wall
with respect to its broker-dealer affiliate
regarding access to information
concerning the composition and/or
changes to the portfolio.5 The Exchange
represents that the Shares will be
subject to Nasdaq Rule 5735, which sets
forth the initial and continued listing
criteria applicable to Managed Fund
Shares.6 The Exchange represents that
for initial and/or continued listing, the
Fund must be in compliance with Rule
10A–3 under the Act.7
Principal Investments
The Fund’s primary investment
objective is to provide current income
and its secondary investment objective
is to provide capital appreciation. The
Fund will pursue its objectives by
investing in large-cap U.S. exchangetraded equity securities and by utilizing
an options strategy consisting of writing
(selling) U.S. exchange-traded covered
call options on the Standard & Poor’s
500 Index (‘‘Index’’).
In pursuing its investment objectives,
under normal market conditions,8 the
the Trust under the Investment Company Act of
1940 (‘‘1940 Act’’). See Investment Company Act
Release No. 28468 (Oct. 27, 2008) (File No. 812–
13477).
5 See Notice supra note 3, 78 FR at 59403. The
Exchange states that in the event (a) the Adviser
becomes newly affiliated with a broker-dealer, or (b)
any new adviser or sub-adviser is a registered
broker-dealer or becomes affiliated with a brokerdealer, it will implement a fire wall with respect to
its relevant personnel and/or such broker-dealer
affiliate, as applicable, regarding access to
information concerning the composition and/or
changes to the portfolio and will be subject to
procedures designed to prevent the use and
dissemination of material non-public information
regarding such portfolio. See id.
6 See id. at 59407.
7 See 17 CFR 240.10A–3. See also Notice, supra
note 3, 78 FR at 59407.
8 The term ‘‘under normal market conditions’’
includes, but is not limited to, the absence of
adverse market, economic, political or other
conditions, including extreme volatility or trading
halts in the securities markets or the financial
markets generally; operational issues causing
dissemination of inaccurate market information; or
force majeure type events such as systems failure,
natural or man-made disaster, act of God, armed
conflict, act of terrorism, riot or labor disruption or
any similar intervening circumstance. In periods of
extreme market disturbance, the Fund may take
temporary defensive positions, by overweighting its
E:\FR\FM\14NON1.SGM
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]]>Agencies
[Federal Register Volume 78, Number 220 (Thursday, November 14, 2013)]
[Notices]
[Pages 68480-68482]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-27201]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70826; File No. SR-ICC-2013-08]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change to Add Rules Related to the Clearing of
MCDX Index CDS Contracts and Make Conforming Changes to Existing Rules
November 7, 2013.
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 October 25, 2013, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared primarily by ICC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to adopt new rules that
will provide the basis for ICC to clear additional credit default swap
contracts. Specifically, ICC is proposing to amend Chapter 26 of its
rules to add Section 26H to provide for the clearance of the MCDX
Untranched Contracts (``MCDX Contracts''). MCDX Contracts are credit
default swap (``CDS'') contracts that reference an index of municipal
issuers.
As discussed in more detail in Item II.A below, Section 26H (MCDX
Untranched Contracts) provides for the definitions and certain specific
contract terms for cleared MCDX Contracts. Conforming changes are also
made to the definition of ``CDS Restructuring Rules'' in Chapter 20
(Credit Default Swaps) and to Rule 2101-02(a)(iii) (Role of the
Regional CDS Committees) to clarify cross-references to the CDS
Restructuring Rules set forth in Section 26E of the Rules. Section 26E
(CDS Restructuring Rules) is modified to provide that it will not apply
to MCDX Contracts (as such contracts are automatically triggered in the
event of a restructuring credit event, as discussed below).
[[Page 68481]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, ICC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. ICC has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of these statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
ICC has identified MCDX Contracts as a product that has become
increasingly important for market participants to manage risk and
express views with respect to municipal issuer credit. ICC's clearance
of MCDX Contracts will facilitate the prompt and accurate settlement of
swaps and contribute to the safeguarding of securities and funds
associated with swap transactions.
MCDX Contracts have similar terms to the CDX North American Index
CDS contracts (``CDX.NA Contracts'') currently cleared by ICC and
governed by Section 26A of the ICC rules. Accordingly, the proposed
rules found in Section 26H largely mirror the ICC rules for CDX.NA
Contracts in Section 26A, with certain modifications that reflect the
underlying reference entities (municipal issuer reference entities
instead of corporate reference entities) and differences in terms and
market conventions between MCDX Contracts and CDX.NA Contracts.
The MCDX Contracts reference the MCDX Index, the current series of
which consists of 50 municipal issuers. MCDX Contracts, consistent with
market convention and widely used standard terms documentation, can be
triggered by credit events for failure to pay or restructuring (by
contrast to the credit events of failure to pay and bankruptcy
applicable to the CDX.NA Contracts). In the event of a restructuring,
all outstanding positions are automatically triggered. Thus, from a
clearing perspective, restructuring credit events would be handled in
the same way as a failure to pay credit event (and would not require
the additional restructuring triggering procedures that are used for
certain corporate and sovereign CDS contracts). MCDX Contracts will
only be denominated in U.S. dollars.
Rule 26H-102 (Definitions) sets forth the definitions used for the
MCDX Contract Rules. An ``Eligible MCDX Untranched Index'' is defined
as ``each particular series and version of a MCDX index or sub-index,
as published by the MCDX Untranched Publisher, determined by ICE Clear
Credit to be eligible and included in the List of Eligible MCDX
Untranched Indexes.'' ``MCDX Untranched Terms Supplement'' refers to
the market standard form of documentation used for credit default swaps
on the MCDX index, which is incorporated by reference into the contract
specifications in Section 26H. The remaining definitions are
substantially the same as the definitions found in ICC Section 26A,
other than certain conforming changes.
Rules 26H-309 (Acceptance of MCDX Untranched Contracts by ICE Clear
Credit), 26H-315 (Terms of the Cleared MCDX Untranched Contract), and
26H-316 (Updating Index Version of Fungible Contracts After a Credit
Event or a Succession Event; Updating Relevant Untranched Standard
Terms Supplement) reflect or incorporate the basic contract
specifications for MCDX Contracts and are substantially the same as
under ICC Section 26A for CDX.NA Contracts. In addition to various non-
substantive conforming changes, proposed Rule 26H-317 (Terms of MCDX
Untranched Contracts) differs from the corresponding Rule 26A-317 to
reflect the fact that restructuring is a credit event for the MCDX
Contract. (CDX.NA Contracts currently cleared by ICC do not use the
restructuring credit event. However, unlike the case with other
corporate and sovereign CDS, in the event of a restructuring for an
MCDX reference entity, all outstanding positions are automatically
triggered. Thus, from a clearing perspective MCDX restructuring events
would be handled in the same way as a failure to pay.)
Because of the automatic triggering following a restructuring
credit event, the provisions of Section 26E of the Rules are not
necessary for MCDX Contracts, and Section 26E is amended to provide
that it does not apply to MCDX Contracts. A conforming change is made
to the definition of ``CDS Restructuring Rules'' in Chapter 20 (Credit
Default Swaps) to make reference to the rules set forth in Section 26E
(CDS Restructuring Rules) of the Rules. In addition, Rule 2101-
02(a)(iii) (Role of the Regional CDS Committees) is modified to make
reference to the CDS Restructuring Rules set forth in Section 26E of
the Rules.
Section 17(A)(b)(3)(F) of the Act \3\ 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. ICC believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to ICC, in particular, to Section 17(A)(b)(3)(F),
because ICC believes that the clearance of MCDX Contracts will
facilitate the prompt and accurate settlement of securities and
contribute to the safeguarding of securities and funds associated with
swap transactions in ICC's custody or control, or for which ICC is
responsible.
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\3\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Self-Regulatory Organization's Statement on Burden on Competition
MCDX Contracts will be available to all ICC Participants for
clearing. The clearing of MCDX Contracts by ICC does not preclude the
offering of MCDX Contracts for clearing by other market participants.
In addition, ICC does not anticipate that accepting MCDX Contracts for
clearing will have any adverse effect on the trading market for the
contract. Therefore, 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
ICC has consulted with its Participants and non-member market
participants concerning the proposed rule change. 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
[[Page 68482]]
(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 rule-comments@sec.gov. Please include
File Number SR-ICC-2013-08 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-2013-08. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m.
Copies of such filings also will be available for inspection and
copying at the principal office of ICE Clear Credit and on ICE Clear
Credit's Web site at https://www.theice.com/notices/Notices.shtml?regulatoryFilings.
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-2013-08
and should be submitted on or before December 5, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\4\
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\4\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-27201 Filed 11-13-13; 8:45 am]
BILLING CODE 8011-01-P
