Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update the ICC Risk Management Framework, 34371-34372 [2014-13933]
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Federal Register / Vol. 79, No. 115 / Monday, June 16, 2014 / Notices
2014–25 and should be submitted on or
before July 7, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–13930 Filed 6–13–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72358; File No. SR–ICC–
2014–09]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Update the ICC Risk
Management Framework
June 10, 2014.
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 May 30,
2014, 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 proposal pursuant to
Section 19(b)(3)(A) of the Act,3 and Rule
19b–4(f)(1) 4 thereunder, so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
emcdonald on DSK67QTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of this proposed rule
change is to revise the ICC Risk
Management Framework to clarify
language related to ICC’s forced
allocation procedures. This revision
does not require any changes to the ICC
Rules.
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 regarding the
proposed rule change. The text of these
15 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)(1).
1 15
VerDate Mar<15>2010
16:36 Jun 13, 2014
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
The proposed revision to ICC’s Risk
Management Framework is intended to
clarify language related to ICC’s forced
allocation procedures and to promote
consistency between ICC’s forced
allocation procedures as set forth in the
ICC Rules and the ICC Risk Management
Framework.
ICC believes such revision will
facilitate the prompt and accurate
clearance and settlement of securities
transactions and derivative agreements,
contracts, and transactions for which it
is responsible. The proposed revision is
described in detail as follows.
Currently, the ICC Risk Management
Framework states that, in the event of a
forced allocation, positions will be
allocated to Clearing Participants
(‘‘CPs’’) based on each CP’s overall risk
profile. Under ICC Rule 20–605(c)(vii),
ICC, in the event of a failed auction or
other inability to close-out or transfer
relevant positions, may allocate
positions to Non-Defaulting CPs on a
pro rata basis in proportion to the size
of each CP’s required contribution to the
Guaranty Fund, as relative to the
aggregate of all Non-Defaulting CPs’
required contributions to the Guaranty
Fund. ICC proposes revising the ICC
Risk Management Framework to more
closely reflect the forced allocation
language in ICC Rule 20–605(c)(vii).
Specifically, ICC proposes adding
clarifying language which states that in
the event of a forced allocation,
positions will be allocated to each NonDefaulting CP on a pro rata basis in
proportion to the size of each CP’s
required contribution to the Guaranty
Fund. ICC believes this update to the
ICC Risk Management Framework
alleviates potential confusion regarding
the allocation process. This is a
clarifying revision, and the changes to
the ICC Risk Management Framework
do not require any operational changes.
Section 17A(b)(3)(F) of the Act 5
requires, among other things, that the
rules of a clearing agency be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions and, to the extent
applicable, derivative agreements,
contracts, and transactions and to
comply with the provisions of the Act
and the rules and regulations
thereunder. ICC believes that the
proposed revision is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
ICC, in particular, to Section
17A(b)(3)(F) 6, because ICC believes that
the proposed rule changes will facilitate
the prompt and accurate settlement of
swaps and contribute to the
safeguarding of securities and funds
associated with swap transactions
which are in the custody or control of
ICC or for which it is responsible. The
revision to the ICC Risk Management
Framework alleviates potential
confusion regarding the allocation
process. As such, the proposed rule
changes will facilitate the prompt and
accurate settlement of swaps and
contribute to the safeguarding of
customer funds and securities within
the control of ICC within the meaning
of Section 17A(b)(3)(F) 7 of the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
ICC does not believe the proposed
revision would have any impact, or
impose any burden, on competition.
The revision to ICC’s Risk Management
Framework regarding forced allocation
procedures applies uniformly across all
CPs. Therefore, ICC does not believe the
proposed revision imposes any burden
on competition that is inappropriate in
furtherance of the purposes of the Act.
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
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A) 8 of the Act and Rule 19b–
4(f)(1) 9 thereunder because the update
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule.
Specifically, ICC is updating language in
the ICC Risk Management Framework to
more closely reflect the forced
allocation procedures set forth in ICC
Rule 20–605(c)(vii). At any time within
6 Id.
7 Id.
8 15
5 15
Jkt 232001
PO 00000
U.S.C. 78q–1(b)(3)(F).
Frm 00098
Fmt 4703
Sfmt 4703
34371
9 17
E:\FR\FM\16JNN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(1).
16JNN1
34372
Federal Register / Vol. 79, No. 115 / Monday, June 16, 2014 / Notices
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
emcdonald on DSK67QTVN1PROD with NOTICES
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–2014–09 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ICC–2014–09. 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 will also 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
VerDate Mar<15>2010
16:36 Jun 13, 2014
Jkt 232001
you wish to make available publicly. All
submissions should refer to File
Number SR–ICC–2014–09 and should
be submitted on or before July 7, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary .
[FR Doc. 2014–13933 Filed 6–13–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72362; File No. SR–
NASDAQ–2014–060]
Self-Regulatory Organizations; the
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Joint Back Office Pricing
June 10, 2014.
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 May 29,
2014, The NASDAQ Stock Market LLC
(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by NASDAQ. 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
NASDAQ proposes to amend Chapter
XV (Options Pricing) on The NASDAQ
Options Market (‘‘NOM’’), NASDAQ’s
facility for executing and routing
standardized equity and index options
to assess joint back office (‘‘JBO’’) 3
participants pricing the same as BrokerDealers 4 and require JBO participants to
utilize a new origin code to identify JBO
orders.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
www.nasdaq.cchwallstreet.com, at the
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 A JBO participant is a Participant organization
that maintains a JBO arrangement with a clearing
broker-dealer (‘‘JBO Broker’’) subject to the
requirements of Regulation T Section 220.7 of the
Federal Reserve System. See also Exchange Rules at
Chapter XIII, Section 5.
4 The term ‘‘Broker-Dealer’’ applies to any
transaction which is not subject to any of the other
transaction fees applicable within a particular
category.
1 15
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
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 Exchange proposes to introduce a
new origin code which will be used to
indicate orders for a JBO account to be
cleared into the Firm range at The
Options Clearing Corporation (‘‘OCC’’)
for purposes of pricing only. Further,
the Exchange proposes to assess fees
and pay rebates to JBO Orders the same
as Broker-Dealers.
Currently, JBO orders clear in the
Firm 5 range at OCC as do Firm orders.
The Exchange is proposing to introduce
an origin code for Participants to
identify orders for a JBO account. The
origin code will simplify the process of
identifying JBO orders for purposes of
pricing only. Participants would be
required to mark their JBO orders in
accordance with the technical
specifications definitions which are
provided by the Exchange. This rule
change will not impact the manner in
which JBO orders are treated for
purposes of other Exchange Rules
including but not limited to priority in
the Exchange’s System. With this
proposal, JBO orders will continue to be
cleared in the Firm range at OCC.
Today, JBO orders are assessed
transaction fees and paid rebates the
same as Firms. The Exchange’s current
pricing does not differentiate Firms and
Broker-Dealers. These market
participants are assessed the same fees
and paid the same rebates. There will be
no impact as a result of this rule change
as far as pricing because Firms and
5 The term ‘‘Firm’’ applies to any transaction that
is identified by a Participant for clearing in the Firm
range at OCC.
E:\FR\FM\16JNN1.SGM
16JNN1
]]>Agencies
[Federal Register Volume 79, Number 115 (Monday, June 16, 2014)]
[Notices]
[Pages 34371-34372]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13933]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72358; File No. SR-ICC-2014-09]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Update
the ICC Risk Management Framework
June 10, 2014.
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 May 30, 2014, 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 proposal pursuant to
Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(1) \4\ thereunder,
so that the proposal was effective upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of this proposed rule change is to revise the ICC Risk
Management Framework to clarify language related to ICC's forced
allocation procedures. This revision does not require any changes to
the ICC Rules.
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 regarding 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
The proposed revision to ICC's Risk Management Framework is
intended to clarify language related to ICC's forced allocation
procedures and to promote consistency between ICC's forced allocation
procedures as set forth in the ICC Rules and the ICC Risk Management
Framework.
ICC believes such revision will facilitate the prompt and accurate
clearance and settlement of securities transactions and derivative
agreements, contracts, and transactions for which it is responsible.
The proposed revision is described in detail as follows.
Currently, the ICC Risk Management Framework states that, in the
event of a forced allocation, positions will be allocated to Clearing
Participants (``CPs'') based on each CP's overall risk profile. Under
ICC Rule 20-605(c)(vii), ICC, in the event of a failed auction or other
inability to close-out or transfer relevant positions, may allocate
positions to Non-Defaulting CPs on a pro rata basis in proportion to
the size of each CP's required contribution to the Guaranty Fund, as
relative to the aggregate of all Non-Defaulting CPs' required
contributions to the Guaranty Fund. ICC proposes revising the ICC Risk
Management Framework to more closely reflect the forced allocation
language in ICC Rule 20-605(c)(vii). Specifically, ICC proposes adding
clarifying language which states that in the event of a forced
allocation, positions will be allocated to each Non-Defaulting CP on a
pro rata basis in proportion to the size of each CP's required
contribution to the Guaranty Fund. ICC believes this update to the ICC
Risk Management Framework alleviates potential confusion regarding the
allocation process. This is a clarifying revision, and the changes to
the ICC Risk Management Framework do not require any operational
changes.
Section 17A(b)(3)(F) of the Act \5\ requires, among other things,
that the rules of a clearing agency be designed to promote the prompt
and accurate clearance and settlement of securities transactions and,
to the extent applicable, derivative agreements, contracts, and
transactions and to comply with the provisions of the Act and the rules
and regulations thereunder. ICC believes that the proposed revision is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to ICC, in particular, to Section
17A(b)(3)(F) \6\, because ICC believes that the proposed rule changes
will facilitate the prompt and accurate settlement of swaps and
contribute to the safeguarding of securities and funds associated with
swap transactions which are in the custody or control of ICC or for
which it is responsible. The revision to the ICC Risk Management
Framework alleviates potential confusion regarding the allocation
process. As such, the proposed rule changes will facilitate the prompt
and accurate settlement of swaps and contribute to the safeguarding of
customer funds and securities within the control of ICC within the
meaning of Section 17A(b)(3)(F) \7\ of the Act.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1(b)(3)(F).
\6\ Id.
\7\ Id.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
ICC does not believe the proposed revision would have any impact,
or impose any burden, on competition. The revision to ICC's Risk
Management Framework regarding forced allocation procedures applies
uniformly across all CPs. Therefore, ICC does not believe the proposed
revision imposes any burden on competition that is inappropriate in
furtherance of the purposes of the Act.
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
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(1) \9\
thereunder because the update constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule. Specifically, ICC is updating language
in the ICC Risk Management Framework to more closely reflect the forced
allocation procedures set forth in ICC Rule 20-605(c)(vii). At any time
within
[[Page 34372]]
60 days of the filing of the proposed rule change, the Commission
summarily may temporarily suspend such rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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-2014-09 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-ICC-2014-09. 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 will also 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-2014-09
and should be submitted on or before July 7, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary .
[FR Doc. 2014-13933 Filed 6-13-14; 8:45 am]
BILLING CODE 8011-01-P
