Proposed Collection; Comment Request, 27798 [2015-11597]
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Federal Register / Vol. 80, No. 93 / Thursday, May 14, 2015 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–11603 Filed 5–13–15; 8:45 am]
BILLING CODE 8011–01–P
Please direct your written comments
to Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: May 8, 2015.
Robert W. Errett,
Deputy Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[FR Doc. 2015–11597 Filed 5–13–15; 8:45 am]
BILLING CODE 8011–01–P
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
SECURITIES AND EXCHANGE
COMMISSION
Extension:
Form 12b–25. SEC File No. 270–71, OMB
Control No. 3235–0058.
tkelley on DSK3SPTVN1PROD with NOTICES
Proposed Collection; Comment
Request
Self-Regulatory Organizations; ICE
Clear Credit LLC; Order Approving
Proposed Rule Change Relating to
Physical Settlement of CDS Contracts
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
The purpose of Form 12b–25 (17 CFR
240.12b–25) is to provide notice to the
Commission and the marketplace that a
public company will be unable to timely
file a required periodic report or
transition report pursuant to the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.). If all the filing
conditions of the form are satisfied, the
company is granted an automatic filing
extension. Approximately 4,456
registrants file Form 12b–25 and it takes
approximately 2.5 hours per response
for a total of 11,140 burden hours.
Written comments are invited on: (a)
Whether this proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
27 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:59 May 13, 2015
Jkt 235001
[Release No. 34–74917; File No. SR–ICC–
2015–004]
May 8, 2015.
I. Introduction
On March 11, 2015, ICE Clear Credit
LLC (‘‘ICC’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change SR–ICC–2015–004 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 March 27,
2015.3 The Commission received one
comment.4 For the reasons discussed
below, the Commission is approving the
proposed rule change.
II. Description of the Proposed Rule
Change
ICC proposes to amend its rules to
modify the terms and conditions for
physical settlement of cleared CDS
Contracts, and to adopt certain new
delivery procedures relating to physical
settlement.
Under the current terms of the ICC
Clearing Rules (‘‘ICC Rules’’), upon the
occurrence of a credit event under a
cleared CDS Contract, the contract is
typically settled in cash in accordance
with the terms of the ICC Rules, which
incorporate the applicable ISDA Credit
Derivatives Definitions (the ‘‘ISDA
Definitions’’) and the market-standard
credit default swap auction
methodology for determining the cash
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Securities Exchange Act Release No. 34–74563
(Mar. 23, 2015), 80 FR 16471 (Mar. 27, 2015) (File
No. SR–ICC–2015–004).
4 See Comment from Kermit Kubitz, dated April
17, 2015, available at https://www.sec.gov/
comments/sr-icc-2015-004/icc2015004-1.htm.
settlement price. However, in certain
circumstances, such as where the Credit
Derivatives Determinations Committee
decides not to hold a cash settlement
auction for a particular credit event, or
such an auction is cancelled under the
terms of the auction methodology
(including because of a failure to
determine the auction settlement price),
the CDS Contracts provide for a fallback
settlement method of physical
settlement. Under physical settlement of
a CDS contract generally, the protection
buyer will be entitled to deliver one or
more qualifying deliverable obligations
to the protection seller, in which case
the protection seller will be required to
pay the protection buyer a defined
physical settlement amount. Under the
current ICC Rules, if physical settlement
applies,5 ICC will match clearing
participants (‘‘Participants’’) that are
protection buyers with Participants that
are protection sellers in the relevant
contract, and the two Participants will
be responsible for effecting physical
settlement between them. ICC does not
itself perform or guarantee performance
of physical settlement between the
matched Participants. Once matching
occurs, the contract is purely a bilateral
contract between the matched
Participants, and ICC has no further
rights or obligations with respect to the
contract. ICC does, however, collect and
hold physical settlement margin as
collateral agent on behalf of the
protection buyer to secure the
protection seller’s obligations to the
protection buyer under physical
settlement.
ICC proposes to amend the ICC Rules
relating to physical settlement such that
ICC will be responsible for financial
performance of physical settlement. ICC
notes that under the amended approach,
it would still require payments and
deliveries in the ordinary course under
physical settlement to be made directly
between the matched buying Participant
and selling Participant, with ICC only
being obligated to make direct payments
in the case of certain defined settlement
failure scenarios. ICC believes that this
proposed rule change will further the
general policy goals of central clearing
for CDS transactions, and is consistent
with ICC’s financial resources, risk
management procedures and
operational capabilities.6
ICC proposes to make certain
amendments to Chapters 1, 4, 5, 21 and
22 of the ICC Rules. ICC also proposes
2 17
PO 00000
Frm 00171
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Sfmt 4703
5 ICC notes that to date, physical settlement has
not been necessary for any of the CDS Contracts
cleared by ICC.
6 ICC notes that a substantially similar approach
to physical settlement is used in the ICE Clear
Europe Limited CDS clearing service.
E:\FR\FM\14MYN1.SGM
14MYN1
Agencies
[Federal Register Volume 80, Number 93 (Thursday, May 14, 2015)]
[Notices]
[Page 27798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11597]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736.
Extension:
Form 12b-25. SEC File No. 270-71, OMB Control No. 3235-0058.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the collection of
information summarized below. The Commission plans to submit this
existing collection of information to the Office of Management and
Budget for extension and approval.
The purpose of Form 12b-25 (17 CFR 240.12b-25) is to provide notice
to the Commission and the marketplace that a public company will be
unable to timely file a required periodic report or transition report
pursuant to the Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.). If all the filing conditions of the form are satisfied, the
company is granted an automatic filing extension. Approximately 4,456
registrants file Form 12b-25 and it takes approximately 2.5 hours per
response for a total of 11,140 burden hours.
Written comments are invited on: (a) Whether this proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden imposed by the collection of information; (c) ways to
enhance the quality, utility, and clarity of the information collected;
and (d) ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology. Consideration will
be given to comments and suggestions submitted in writing within 60
days of this publication.
Please direct your written comments to Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email
to: PRA_Mailbox@sec.gov.
Dated: May 8, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-11597 Filed 5-13-15; 8:45 am]
BILLING CODE 8011-01-P