Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change To Provide for the Clearance of Additional Standard Western European Sovereign Single Names, 8730-8731 [2015-03229]
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Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 8
and the rules and regulations
thereunder.
It Is Therefore Ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (File No. SR–ICC–
2014–23) be, and hereby is, approved.10
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Brent J. Fields,
Secretary.
[FR Doc. 2015–03230 Filed 2–17–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74256; File No. SR–ICC–
2014–21]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Order Approving
Proposed Rule Change To Provide for
the Clearance of Additional Standard
Western European Sovereign Single
Names
February 11, 2015.
I. Introduction
On December 16, 2014, ICE Clear
Credit LLC (‘‘ICC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change SR–ICC–2014–21 pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder.2 The proposed rule
change was published for comment in
the Federal Register on January 2,
2015.3 The Commission received one
comment.4 For the reasons discussed
below, the Commission is approving the
proposed rule change.
8 15
U.S.C. 78q–1.
U.S.C. 78s(b)(2).
10 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
11 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 34–73941
(Dec. 24, 2014), 80 FR 75 (Jan. 2, 2015) (File No.
SR–ICC–2014–21).
4 See Comment from Anonymous, dated January
23, 2015, available at https://www.sec.gov/
comments/sr-icc-2014-21/icc201421-1.htm (stating
‘‘Good Idea’’).
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II. Description of the Proposed Rule
Change
ICC proposes to adopt rules that will
provide the basis for ICC to clear
additional credit default swap (‘‘CDS’’)
contracts. Specifically, ICC is proposing
to amend Section 26I of its Rules to
provide for the clearance of additional
Standard Western European Sovereign
CDS contracts (collectively, ‘‘SWES
Contracts’’). ICC has been approved to
clear four SWES Contracts: the Republic
of Ireland, the Italian Republic, the
Portuguese Republic, and the Kingdom
of Spain.5 The proposed changes to the
ICC Rules would provide for the
clearance of additional SWES Contracts,
specifically the Kingdom of Belgium
and the Republic of Austria (the
‘‘Additional SWES Contracts’’).
ICC states that these Additional SWES
Contracts will be offered on the 2003
and 2014 ISDA Credit Derivatives
Definitions. ICC believes that the
addition of these SWES Contracts will
benefit the market for credit default
swaps on Western European sovereigns
by providing market participants the
benefits of clearing, including reduction
in counterparty risk and safeguarding of
margin assets pursuant to clearing house
rules. According to ICC, the clearing of
the additional SWES Contracts will not
require any changes in ICC’s risk
management framework (including
relevant policies) or margin model. ICC
represents that the Additional SWES
Contracts have terms consistent with the
other SWES Contracts which ICC has
been approved to clear and which will
be governed by Subchapter 26I of the
ICC rules, namely the Republic of
Ireland, the Italian Republic, the
Portuguese Republic, and the Kingdom
of Spain.
ICC proposes minor revisions to
Subchapter 26I (Standard Western
European Sovereign (‘‘SWES’’) Single
Name) to provide for clearing the
additional SWES Contracts. Rule 26I–
102 will be modified to include the
Kingdom of Belgium and the Republic
of Austria in the list of specific Eligible
SWES Reference Entities to be cleared
by ICC. Additionally, in ICC Rule 26D–
102 (Definitions), the definition of
‘‘Eligible SES Reference Entity’’ will be
modified to correct a typographical error
and correctly identify the reference
entity for a cleared product as Hungary
(as opposed to the Republic of
Hungary).
5 See Exchange Act Release No. 34–72941(Nov. 5,
2014), 79 FR 67213 (Nov. 12, 2014) (File No. SR–
ICC–2014–14) (order approving rule change to clear
other Western European sovereign CDS contracts)
(the ‘‘Prior WES Order’’).
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III. Comments
The Commission received one
comment supporting approval of the
proposed rule change. In this
anonymous comment, the author
expressed general support for the
proposal but did not opine on any
particular aspects of the proposal or
offer any specific comment beyond a
statement of general support.
IV. Discussion and Commission
Findings
Section 19(b)(2)(C) of the Act 6 directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if the Commission finds
that such proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to such selfregulatory organization. Section
17A(b)(3)(F) of the Act 7 requires, among
other things, that the rules of a clearing
agency are 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, in general,
to protect investors and the public
interest.
The Commission finds that clearing of
the Additional SWES Contracts is
consistent with the requirements of
Section 17A of the Act 8 and regulations
thereunder applicable to it, including
the standards under Rule 17Ad–22.9
The proposed change will provide for
clearing of Additional SWES Contracts
in the same manner as other SWES
Contracts. Specifically, the new
contracts will be cleared, and the risk
associated with clearing the new
contracts will be appropriately
managed, pursuant to ICC’s existing
margin and guaranty fund methodology,
operational and managerial procedures,
settlement procedures and default
management policies. The Commission
believes that the proposal is therefore
designed to promote the prompt and
accurate clearance and settlement of
securities transactions and derivative
agreements, contracts and transactions
cleared by ICC, to assure the
safeguarding of securities and funds in
the custody or control of ICC, and to
protect investors and the public interest,
within the meaning of is designed to
promote the prompt and accurate
6 15
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1(b)(3)(F).
8 15 U.S.C. 78q–1.
9 17 CFR 240.17Ad–22.
7 15
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Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices
clearance and settlement of securities
transactions, consistent with Section
17A(b)(3)(F) of the Act.10
solicit comments on the proposed rule
change from interested persons.
V. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the
Act 11 and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (SR–ICC–2014–
21) be, and hereby is, approved.13
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Brent J. Fields,
Secretary.
[FR Doc. 2015–03229 Filed 2–17–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74254; File No. SR–EDGA–
2015–06]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to Rules 1.5, 2.3, 2.5, and
2.6 Related to the Registration
Requirements for Members of EDGA
Exchange, Inc.
February 11, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
30, 2015, EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
10 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1.
12 15 U.S.C. 78s(b)(2).
13 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
14 17 CFR 200.30–3(a)(12).
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)(6)(iii).
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend Rules 1.5, 2.3, 2.5, and 2.6
related to the registration requirements
for Members of the Exchange.
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
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 parts 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 amend the
various Exchange rules related to the
registration requirements on the
Exchange in order to make the
Exchange’s registration requirements
substantively identical to the
corresponding rules on BATS Exchange,
Inc. (‘‘BZX’’) and BATS Y-Exchange,
Inc. (‘‘BYX’’), as further described
below. Earlier this year, the Exchange
and its affiliate, EDGX Exchange, Inc.
(‘‘EDGX’’), received approval to effect a
merger (the ‘‘Merger’’) of the Exchange’s
parent company, Direct Edge Holdings
LLC, with BATS Global Markets, Inc.,
the parent of BZX and BYX (together
with BZX, EDGA, and EDGX, the ‘‘BGM
Affiliated Exchanges’’).5 In the context
of the Merger, the BGM Affiliated
Exchanges are working to align certain
system and regulatory functionality,
retaining only intended differences
between the BGM Affiliated Exchanges.
Thus, the proposal set forth below is
intended to amend Rules 1.5, 2.3, 2.5,
and 2.6 to make such Rules
substantively identical to corresponding
rules on BZX and BYX 6 related to
registration requirements in order to
provide a consistent regulatory
approach across each of the BGM
Affiliated Exchanges.7
Currently, Rule 1.5(n) defines the
term ‘‘Member’’ as meaning any
registered broker or dealer, or any
person associated with a registered
broker or dealer, that has been admitted
to membership in the Exchange. A
Member will have the status of a
‘‘member’’ of the Exchange as that term
is defined in Section 3(a)(3) of the Act.
The Exchange is proposing, however, to
delete ‘‘or any person associated with a
registered broker or dealer’’ from the
rule text, as such phrase is not
contained in corresponding BZX and
BYX rules (i.e., Rule 1.5(n)) and because
the Exchange no longer believes that
this language is necessary. The
Exchange is also proposing to amend
the rule text such that Membership may
be granted to a sole proprietor,
partnership, corporation, limited
liability company or other organization
which is a registered broker or dealer
pursuant to Section 15 of the Act, and
which has been approved by the
Exchange, language which is currently
included in Rule 2.3(a), which, as
described below, the Exchange is
proposing to delete in order to further
align Exchange rules with BZX and BYX
1.5(n).
The Exchange is also proposing to
delete the definition of ‘‘Principal’’ from
Rule 1.5(t), which will instead be
defined in the proposed changes to
paragraph (d) of Interpretation and
Policy .01 to Rule 2.5, which are further
described below. Currently, the term
principal means persons associated with
a member who are actively engaged in
the management of the member’s
securities business, including
supervision, solicitation, conduct of
business or the training of persons
associated with a Member for any of
these functions. Such persons shall
include sole proprietors, officers,
partners, managers of business offices
engaged in such functions, and directors
of corporations. The Exchange is
proposing to add the text ‘‘(Reserved)’’
to the rule text in order to maintain the
current paragraph numbering within
Rule 1.5. The proposed new definition
for principal will be discussed below.
The Exchange intends to consolidate
its registration requirements in Rule 2.5
6 See
BZX and BYX Rules 1.5, 2.3, 2.5, and 2.6.
Exchange notes that EDGX intends to file
a proposal very similar to this proposal that will
align the rules related to registration requirements
across each of the BGM Affiliated Exchanges.
7 The
5 See Securities Exchange Act Release No. 71449
(January 30, 2014), 79 FR 6961 (February 5, 2014)
(SR–EDGX–2013–043; SR–EDGA–2013–034).
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8731
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]]>Agencies
[Federal Register Volume 80, Number 32 (Wednesday, February 18, 2015)]
[Notices]
[Pages 8730-8731]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-03229]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74256; File No. SR-ICC-2014-21]
Self-Regulatory Organizations; ICE Clear Credit LLC; Order
Approving Proposed Rule Change To Provide for the Clearance of
Additional Standard Western European Sovereign Single Names
February 11, 2015.
I. Introduction
On December 16, 2014, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change SR-ICC-2014-21 pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder.\2\ The
proposed rule change was published for comment in the Federal Register
on January 2, 2015.\3\ The Commission received one comment.\4\ For the
reasons discussed below, the Commission is approving the proposed rule
change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 34-73941 (Dec. 24,
2014), 80 FR 75 (Jan. 2, 2015) (File No. SR-ICC-2014-21).
\4\ See Comment from Anonymous, dated January 23, 2015,
available at https://www.sec.gov/comments/sr-icc-2014-21/icc201421-1.htm (stating ``Good Idea'').
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change
ICC proposes to adopt rules that will provide the basis for ICC to
clear additional credit default swap (``CDS'') contracts. Specifically,
ICC is proposing to amend Section 26I of its Rules to provide for the
clearance of additional Standard Western European Sovereign CDS
contracts (collectively, ``SWES Contracts''). ICC has been approved to
clear four SWES Contracts: the Republic of Ireland, the Italian
Republic, the Portuguese Republic, and the Kingdom of Spain.\5\ The
proposed changes to the ICC Rules would provide for the clearance of
additional SWES Contracts, specifically the Kingdom of Belgium and the
Republic of Austria (the ``Additional SWES Contracts'').
---------------------------------------------------------------------------
\5\ See Exchange Act Release No. 34-72941(Nov. 5, 2014), 79 FR
67213 (Nov. 12, 2014) (File No. SR-ICC-2014-14) (order approving
rule change to clear other Western European sovereign CDS contracts)
(the ``Prior WES Order'').
---------------------------------------------------------------------------
ICC states that these Additional SWES Contracts will be offered on
the 2003 and 2014 ISDA Credit Derivatives Definitions. ICC believes
that the addition of these SWES Contracts will benefit the market for
credit default swaps on Western European sovereigns by providing market
participants the benefits of clearing, including reduction in
counterparty risk and safeguarding of margin assets pursuant to
clearing house rules. According to ICC, the clearing of the additional
SWES Contracts will not require any changes in ICC's risk management
framework (including relevant policies) or margin model. ICC represents
that the Additional SWES Contracts have terms consistent with the other
SWES Contracts which ICC has been approved to clear and which will be
governed by Subchapter 26I of the ICC rules, namely the Republic of
Ireland, the Italian Republic, the Portuguese Republic, and the Kingdom
of Spain.
ICC proposes minor revisions to Subchapter 26I (Standard Western
European Sovereign (``SWES'') Single Name) to provide for clearing the
additional SWES Contracts. Rule 26I-102 will be modified to include the
Kingdom of Belgium and the Republic of Austria in the list of specific
Eligible SWES Reference Entities to be cleared by ICC. Additionally, in
ICC Rule 26D-102 (Definitions), the definition of ``Eligible SES
Reference Entity'' will be modified to correct a typographical error
and correctly identify the reference entity for a cleared product as
Hungary (as opposed to the Republic of Hungary).
III. Comments
The Commission received one comment supporting approval of the
proposed rule change. In this anonymous comment, the author expressed
general support for the proposal but did not opine on any particular
aspects of the proposal or offer any specific comment beyond a
statement of general support.
IV. Discussion and Commission Findings
Section 19(b)(2)(C) of the Act \6\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if the
Commission finds that such proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to such self-regulatory organization. Section 17A(b)(3)(F)
of the Act \7\ requires, among other things, that the rules of a
clearing agency are 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, in general, to protect investors and the public
interest.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(2)(C).
\7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The Commission finds that clearing of the Additional SWES Contracts
is consistent with the requirements of Section 17A of the Act \8\ and
regulations thereunder applicable to it, including the standards under
Rule 17Ad-22.\9\ The proposed change will provide for clearing of
Additional SWES Contracts in the same manner as other SWES Contracts.
Specifically, the new contracts will be cleared, and the risk
associated with clearing the new contracts will be appropriately
managed, pursuant to ICC's existing margin and guaranty fund
methodology, operational and managerial procedures, settlement
procedures and default management policies. The Commission believes
that the proposal is therefore designed to promote the prompt and
accurate clearance and settlement of securities transactions and
derivative agreements, contracts and transactions cleared by ICC, to
assure the safeguarding of securities and funds in the custody or
control of ICC, and to protect investors and the public interest,
within the meaning of is designed to promote the prompt and accurate
[[Page 8731]]
clearance and settlement of securities transactions, consistent with
Section 17A(b)(3)(F) of the Act.\10\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1.
\9\ 17 CFR 240.17Ad-22.
\10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
V. Conclusion
On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of Section 17A of the Act \11\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-ICC-2014-21) be, and hereby
is, approved.\13\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(2).
\13\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Brent J. Fields,
Secretary.
[FR Doc. 2015-03229 Filed 2-17-15; 8:45 am]
BILLING CODE 8011-01-P
