Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change Relating to CDS Procedures for CDX North America Index CDS Contracts, 22593-22594 [2015-09270]

Download as PDF asabaliauskas on DSK5VPTVN1PROD with NOTICES Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices provisions are no longer necessary as they limit OCC’s ability to modify its By-Laws, Rules and agreements which may be necessary for OCC to fulfill its obligations as a clearing organization. OCC will, however, continue to be obligated to fulfill both the provisions of the Clearing Agreement and OCC’s regulatory responsibilities. Section 8 has additionally been amended to delete an obligation for each party to provide the other with proposed rule changes. The elimination of this contractual obligation reflects the parties’ determination that their respective obligations to post filed regulatory submissions on their public Web sites provides sufficient notice of such changes. • Section 11, ‘‘Financial Requirements for Clearing Members,’’ has been amended to delete a provision stating the specific financial responsibility standards OCC has with respect to its Clearing Members. This change was made to further streamline the Clearing Agreement given OCC’s general obligation to remain consistent with OCC By-Laws and Rules. • Section 14, ‘‘Programs and Projects,’’ has been amended to eliminate a provision expressly requiring OCC to offer futures contract clearing terms to NFX that are no less favorable to the terms offered to other exchanges. • Sections 15 and 24 in the Previous Agreement, ‘‘Information Sharing’’ and ‘‘Quality Standards’’ respectively, have been deleted in their entirety in an attempt to simplify the Clearing Agreement as the sections create unnecessary obligations on the parties and are duplicative of general regulatory responsibilities of both parties. • Section 18(b), ‘‘Other Grounds for Termination,’’ has been amended to include a provision that OCC may terminate the Clearing Agreement at any time so long as NFX is given 120 days prior written notice. The addition of this provision better balances the rights of both parties to terminate the Clearing Agreement at their discretion provided that proper notice is given as required by the Clearing Agreement. • Various administrative changes have been made throughout the document including, but not limited to, an amended legal name and description of NFX, updated references to sections within the document, and clean-up changes of duplicative terms. Finally, pursuant to the rule change, as approved, Schedule A of the Clearing Agreement, ‘‘Description of Clearing and Settlement Services’’ and Schedule B of the Clearing Agreement, VerDate Sep<11>2014 18:00 Apr 21, 2015 Jkt 235001 ‘‘Information Sharing,’’ are being amended as follows: • Section (1) of Schedule A of the Clearing Agreement, ‘‘Trade Acceptance,’’ has been updated to reflect current OCC operational requirements with respect to submission of confirmed trades. • Section (4) of Schedule A, ‘‘Information for Clearing Members,’’ has been amended to delete specific information sharing obligations of OCC to its Clearing Members and to state that the information provided to Clearing Members will be in accordance with OCC’s By-Laws and Rules. • Section (I)(A) of Schedule B has been amended to delete specific references to information that OCC will provide to Clearing Members on a daily basis and instead adds a provision that OCC will provide NFX with its ‘‘Data Distribution Service’’ information for regulatory and financial purposes. • Section (I)(B) of Schedule B has been amended to delete certain information sharing provisions and to state that the information sharing obligations OCC continues to have may be satisfied by posting the required information on OCC’s public Web site which streamlines the information sharing process. II. Discussion and Commission Findings Section 19(b)(2)(C) of the Act 11 directs the Commission to approve a proposed rule change of a selfregulatory organization if it finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to such organization. The Commission finds that the proposed rule change is consistent with Section 17A(b)(3)(F) of the Act,12 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 its custody or control or for which it is responsible, and, in general, to protect investors and the public interest. As approved, the Clearing Agreement will allow derivative contract trades executed on NFX to be cleared and settled at OCC, thereby ensuring that these trades will be subject to the comprehensive operational and risk management framework at OCC. In so doing, the 11 15 12 15 PO 00000 U.S.C. 78s(b)(2)(C). U.S.C. 78q–1(b)(3)(F). Frm 00121 Fmt 4703 Sfmt 4703 22593 Clearing Agreement, should reduce the costs and risks associated with clearing and settling NFX trades, which should in turn promote the prompt and accurate clearance and settlement of the NFX derivative contract transactions, better assure the safeguarding of related securities and funds in the custody and control of OCC, and better protect investors and the public interest. III. 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 13 and the rules and regulations thereunder. IT IS THEREFORE ORDERED, pursuant to Section 19(b)(2) of the Act,14 that the proposed rule change (SR–OCC–2015–03) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Brent J. Fields, Secretary. [FR Doc. 2015–09266 Filed 4–21–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74741; File No. SR–ICEEU– 2015–005] Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change Relating to CDS Procedures for CDX North America Index CDS Contracts April 16, 2015. On February 12, 2015, ICE Clear Europe Limited (‘‘ICEEU’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to revise ICEEU’s CDS Procedures, CDS Risk Model Description and CDS End-of-Day Price Discovery Policy to provide the basis for ICEEU to clear CDX North America Index CDS Contracts (‘‘CDX.NA Contracts’’). The proposed rule change 13 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 14 15 U.S.C. 78s(b)(2). 15 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. E:\FR\FM\22APN1.SGM 22APN1 22594 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices was published for comment in the Federal Register on March 2, 2015.3 To date, the Commission has not received comments on the proposal. Section 19(b)(2) of the Act 4 provides that within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The 45th day from the publication of notice of filing of this proposed rule change is April 16, 2015. The Commission is extending this 45day time period. ICEEU’s proposed rule change would revise ICEEU’s CDS Procedures, CDS Risk Model Description and CDS Endof-Day Price Discovery Policy to enable ICEEU to clear CDX.NA Contracts, as well as make changes to ICEEU’s CDS Procedures relating to iTraxx Contracts and single name CDS Contracts. In order to provide the Commission with sufficient time to consider the proposed rule change, the Commission finds it is appropriate to designate a longer period within which to take action on the proposed rule change. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,5 designates May 31, 2015, as the date by which the Commission should either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SR–ICEEU–2015–005). Brent J. Fields, Secretary. [FR Doc. 2015–09270 Filed 4–21–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74740; File No. SR–BYX– 2015–23] Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 3.5 (Advertising Practices) and Repeal Exchange Rule 3.20 (Initial or Partial Payments) April 16, 2015. 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 April 1, 2015, BATS Y-Exchange, Inc. (‘‘Exchange’’ or ‘‘BYX’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange has designated this proposal as a ‘‘non-controversial’’ proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders it effective upon filing with the Commission. 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 Exchange filed a proposal to: (i) Amend Exchange Rule 3.5 (Advertising Practices); and (ii) repeal Exchange Rule 3.20 (Initial or Partial Payments) to conform with the rules of the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) for purposes of an agreement between the Exchange and FINRA pursuant to Rule 17d–2 under the Act.5 The proposed rule change is identical to proposed rule changes submitted by the EDGX Exchange, Inc. (‘‘EDGX’’) and the EDGA Exchange, Inc. (‘‘EDGA’’) that were published by the Commission.6 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 5 17 CFR 240.17d–2. 6 See Securities Exchange Act Release Nos. 70837 (Nov. 8, 2013), 78 FR 68889 (Nov. 15, 2013) (SR– EDGA–2013–32) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend EDGA Rule 3.5 (Advertising Practices) and to Repeal Rule 3.20 (Initial or Partial Payments) to Conform with the Rules of the Financial Industry Regulatory Authority); and 70836 (Nov. 8, 2013), 78 FR 68897 (Nov. 15, 2013) (SR–EDGX–2013–40) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend EDGX Rule 3.5 (Advertising Practices) and to Repeal Rule 3.20 asabaliauskas on DSK5VPTVN1PROD with NOTICES 2 17 3 Securities Exchange Act Release No. 34–74362 (Feb. 24, 2015), 80 FR 11246 (Mar. 2, 2015). 4 15 U.S.C. 78s(b)(2). 5 15 U.S.C. 78s(b)(2). VerDate Sep<11>2014 18:00 Apr 21, 2015 Jkt 235001 PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 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 Pursuant to Rule 17d–2 under the Act,7 the Exchange and FINRA entered into an agreement to allocate regulatory responsibility for common rules (‘‘17d– 2 Agreement’’). The 17d–2 Agreement covers common members of the Exchange and FINRA (‘‘Common Members’’) and allocates to FINRA regulatory responsibility, with respect to Common Members, for the following: (i) Examination of Common Members for compliance with federal securities laws, rules, and regulations, and rules of the Exchange that the Exchange has certified as identical or substantially similar to FINRA rules; (ii) investigation of Common Members for violations of federal securities laws, rules, and regulations, and Exchange rules that the Exchange has certified as identical or substantially identical to FINRA rules; and (iii) enforcement of compliance by Common Members with the federal securities laws, rules, and regulations, and the rules of the Exchange that the Exchange has certified as identical or substantially similar to FINRA rules.8 The 17d–2 Agreement included a certification by the Exchange that states that the requirements contained in certain Exchange rules are identical to, or substantially similar to, certain (Initial or Partial Payments) to Conform with the Rules of the Financial Industry Regulatory Authority). 7 17 CFR 240.17d–2. 8 See Securities and Exchange Release No. 61698 (March 12, 2010), 75 FR 13151 (March 18, 2010) (approving File No. 10–196). E:\FR\FM\22APN1.SGM 22APN1

Agencies

[Federal Register Volume 80, Number 77 (Wednesday, April 22, 2015)]
[Notices]
[Pages 22593-22594]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09270]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74741; File No. SR-ICEEU-2015-005]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Designation of Longer Period for Commission Action on Proposed Rule 
Change Relating to CDS Procedures for CDX North America Index CDS 
Contracts

April 16, 2015.
    On February 12, 2015, ICE Clear Europe Limited (``ICEEU'') filed 
with the Securities and Exchange Commission (``Commission''), pursuant 
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') 
\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to revise 
ICEEU's CDS Procedures, CDS Risk Model Description and CDS End-of-Day 
Price Discovery Policy to provide the basis for ICEEU to clear CDX 
North America Index CDS Contracts (``CDX.NA Contracts''). The proposed 
rule change

[[Page 22594]]

was published for comment in the Federal Register on March 2, 2015.\3\ 
To date, the Commission has not received comments on the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 34-74362 (Feb. 24, 
2015), 80 FR 11246 (Mar. 2, 2015).
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \4\ provides that within 45 days of the 
publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day from the publication of notice of filing of this proposed rule 
change is April 16, 2015. The Commission is extending this 45-day time 
period.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    ICEEU's proposed rule change would revise ICEEU's CDS Procedures, 
CDS Risk Model Description and CDS End-of-Day Price Discovery Policy to 
enable ICEEU to clear CDX.NA Contracts, as well as make changes to 
ICEEU's CDS Procedures relating to iTraxx Contracts and single name CDS 
Contracts. In order to provide the Commission with sufficient time to 
consider the proposed rule change, the Commission finds it is 
appropriate to designate a longer period within which to take action on 
the proposed rule change.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\5\ designates May 31, 2015, as the date by which the Commission 
should either approve or disapprove, or institute proceedings to 
determine whether to disapprove, the proposed rule change (File No. SR-
ICEEU-2015-005).
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(2).

Brent J. Fields,
Secretary.
[FR Doc. 2015-09270 Filed 4-21-15; 8:45 am]
 BILLING CODE 8011-01-P
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