Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change To Revise the ICC Operational Risk Management Framework, 16245-16247 [2016-06747]
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Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Notices
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act,27 and
subparagraph (f)(2) of Rule 19b–4
thereunder,28 because it establishes a
due, fee, or other charge imposed by ISE
Mercury.
At any time within 60 days of the
filing of such 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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or 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:
asabaliauskas on DSK3SPTVN1PROD 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–
ISEMercury–2016–05 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ISEMercury–2016–05. 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
filing also will be available for
inspection and copying at the principal
office of the Exchange. 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–
ISEMercury–2016–05, and should be
submitted on or before April 15, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
Brent J. Fields,
Secretary.
[FR Doc. 2016–06744 Filed 3–24–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77413; File No. SR–ICC–
2016–003]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing of
Proposed Rule Change To Revise the
ICC Operational Risk Management
Framework
March 21, 2016.
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 March 10,
2016, 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 principal purpose of the
proposed rule change is to update ICC’s
Operational Risk Management
29 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
27 15
U.S.C. 78s(b)(3)(A)(ii).
28 17 CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
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16245
Framework. These revisions do not
require any changes to the ICC Clearing
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 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 proposes updates to the ICC
Operational Risk Management
Framework. ICC believes such revisions
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 revisions
are described in detail as follows.
The ICC Operational Risk
Management Framework details ICC’s
dynamic and independent program of
risk assessment and oversight, managed
by the Operational Risk Manager
(‘‘ORM’’), which aims to reduce
operational incidents, encourage
process and control improvement, bring
transparency to operational performance
standard monitoring, and fulfill
regulatory obligations. ICC proposes
organizational changes to its
Operational Risk Management
Framework related to its operational
risk management processes.
ICC has revised the Operational Risk
Management Framework to frame its
existing operational risk program and
processes around an operational risk
lifecycle, designed to highlight certain
aspects of the processes and present the
processes in a more efficient manner.
The operational risk lifecycle utilized by
ICC has five components: Identify,
assess, monitor, mitigate and report.
Each of these lifecycle components are
first defined generally in the document
then applied to each of ICC’s two
operational risk processes: Risk
assessment; and performance objectives
setting and monitoring. Specifically, the
content for each risk process has been
reorganized to fall into each of the
operational risk lifecycle components
(i.e., identify, assess, monitor, mitigate,
and report). For completion purposes,
E:\FR\FM\25MRN1.SGM
25MRN1
asabaliauskas on DSK3SPTVN1PROD with NOTICES
16246
Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Notices
ICC added information regarding the
‘assess’ and ‘report’ component of the
risk assessment process. Specifically,
ICC assesses each of its risk scenarios to
determine the inherent risk rating
associated with the occurrence of an
event or incident, as well as assess the
effectiveness of any relevant risk
controls. Further, in the ‘report’
component, ICC clarified that the ORM
presents operational risk reporting to an
internal committee which includes
members of senior management. The
responsibilities of the ORM, which were
previously listed out in the document,
were incorporated into the risk
lifecycles. The ORM will continue to
provide management and staff with
advice and guidance related to the
development of controls designed to
increase performance and reduce
processing risk, as part of the ‘mitigate’
risk lifecycle component. Similarly, the
responsibilities of senior management,
which were previously listed out in the
document, were incorporated into the
risk lifecycles.
ICC has categorized those aspects of
the operational risk management
program which do not fall within this
lifecycle as ‘‘Operational Risk Focus
Areas.’’ These risk focus areas include:
Business continuity planning and
disaster recovery; vendor assessment;
new products and initiatives;
information security; and technology
control functions. ICC has reorganized
the order of these risk focus areas to
better distinguish which functions may,
with oversight by the ORM, be
outsourced to Intercontinental
Exchange, Inc. (‘‘ICE, Inc.’’) or
performed by departments dedicated to
that particular risk area.
ICC has made several clarifying and
organizational enhancements to the
various risk focus area descriptions.
Further, specific details contained
within other ICC policies and
procedures were removed and described
more generally within the Operational
Risk Management Framework, in an
effort to reduce redundancy amongst
ICC policies and procedures. ICC
continues to maintain business
continuity planning and disaster
recovery as two separate programs with
separate and distinct components;
however, ICC has grouped the
description of these programs together
for purposes of the Operational Risk
Management Framework. ICC enhanced
the ‘‘Vendor Assessment’’ risk focus
area description to note that the ORM is
responsible for conducting a service
provider risk assessment for critical
vendors, and to list the specific steps
taken as part of such risk assessment.
ICC also enhanced the ‘‘Information
VerDate Sep<11>2014
18:30 Mar 24, 2016
Jkt 238001
Security’’ risk focus area description to
note that the ICE, Inc. Information
Security Department conducts its own
risk assessments related to information
security and physical security/
environmental controls, pursuant to
internal policies which are maintained
by an ICE, Inc. internal committee.
Information regarding the Firm Wide
Incident Management Program was
included in the new ‘Technology
Controls Section.’ ICC enhanced the
‘Technology Control Functions’ risk
focus area description to note that the
ICC Systems Operations team is
responsible for executing daily clearing
functions within established service
expectations and performing incident
management. ICC described this
incident management process generally
within the framework, and removed
more detailed aspects of the program
which are contained in specific program
documentation.
General information regarding the
development and enforcement of a firmwide operational risk framework was
removed, as the revised framework more
clearly lays out in each particular
section who is responsible for the
development and enforcement of that
component of the operational risk
management framework. Information
regarding the human resource reporting
line of the ORM and specific references
to titles of documents utilized as part of
the risk assessment process were
removed. As the Vendor Risk
Management policy was retired and
encompassed within the Operational
Risk Management Framework, reference
to the policy was removed from the
document. ICC removed internal audit
responsibilities from the Operational
Risk Management Framework as such
responsibilities are contained within
internal audit documentation.
The overall governance of the
Operational Risk Framework has been
updated to reflect current practices.
Specifically, material amendments are
reviewed by the Risk Committee, and
approved by the Board. The Board
reviews the Operational Risk
Management Framework at least
annually.
Other non-material changes were
made to the framework to enhance
readability. Previously, ICC included
regulatory requirements and industry
guidance information within the
framework; this information has been
moved to a separate appendix to the
framework. Further, information
regarding Regulation Systems,
Compliance, and Integrity has been
added for completeness. Certain
information regarding governance and
governing committees has been
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
resituated to the reporting section of the
relevant operational risk lifecycle.
Similarly, information regarding the
roles and responsibilities of the ORM
and senior management has been
resituated to the appropriate section the
operational risk lifecycle.
Section 17A(b)(3)(F) of the Act 3
requires, among other things, that the
rules of a clearing agency be designed to
protect investors and the public interest
and to comply with the provisions of
the Act and the rules and regulations
thereunder. ICC believes that the
proposed rule changes are 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),4 because ICC
believes that the proposed rule changes
will protect investors and the public
interest, as the reorganization of ICC’s
existing operational risk processes
around the operational risk lifecycle
promotes readability and efficiency, and
alleviates potential confusion
throughout the Operational Risk
Management Framework. In addition,
the proposed revisions are consistent
with the relevant requirements of Rule
17Ad–22.5 The changes to the ICC
Operational Risk Management
Framework further ensure that ICC,
through its operational risk program, is
able to identify sources of operational
risk and minimize them through the
development of appropriate systems,
control, and procedures. Thus, the
changes are reasonably designed to meet
the operational risk requirements of
Rule 17Ad–22(d)(4).6 As such, the
proposed changes are designed to
promote the prompt and accurate
clearance and settlement of securities
transactions, derivatives agreements,
contracts, and transactions 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
rule changes would have any impact, or
impose any burden, on competition.
The ICC Operational Risk Management
Framework applies uniformly across all
market participants. Therefore, ICC does
not believe the proposed rule changes
impose any burden on competition that
is inappropriate in furtherance of the
purposes of the Act.
3 15
U.S.C. 78q–1(b)(3)(F).
4 Id.
5 17
6 17
CFR 240.17Ad–22.
CFR 240.17Ad–22(d)(4).
7 Id.
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Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Notices
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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date 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
such proposed rule change, or
(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–2016–003 on the subject line.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
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–2016–003. 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
VerDate Sep<11>2014
18:30 Mar 24, 2016
Jkt 238001
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/clear-credit/regulation.
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–2016–003 and should
be submitted on or before April 15,
2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Brent J. Fields,
Secretary.
[FR Doc. 2016–06747 Filed 3–24–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
32032; 812–14285]
Northern Lights Fund Trust and
Princeton Fund Advisors, LLC; Notice
of Application
March 21, 2016.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application under
Section 6(c) of the Investment Company
Act of 1940 (‘‘Act’’) for an exemption
from Section 15(a) of the Act and Rule
18f–2 under the Act, as well as from
certain disclosure requirements in Rule
20a–1 under the Act, Item 19(a)(3) of
Form N–1A, Items 22(c)(1)(ii),
22(c)(1)(iii), 22(c)(8) and 22(c)(9) of
Schedule 14A under the Securities
Exchange Act of 1934, and Sections 6–
07(2)(a), (b), and (c) of Regulation S–X
(‘‘Disclosure Requirements’’). The
requested exemption would permit an
investment adviser to hire and replace
certain sub-advisers without
shareholder approval and grant relief
from the Disclosure Requirements as
they relate to fees paid to the subadvisers.
AGENCY:
8 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00121
Fmt 4703
Sfmt 4703
16247
Northern Lights Fund
Trust (the ‘‘Trust’’), a Delaware statutory
trust registered under the Act as an
open-end management investment
company with multiple series, and
Princeton Fund Advisors LLC, a
Delaware limited liability company
registered as an investment adviser
under the Investment Advisers Act of
1940 (‘‘the ‘‘Adviser,’’ and, collectively
with the Trust, the ‘‘Applicants’’).
FILING DATES: The application was filed
March 6, 2014, and amended on August
21, 2014, November 10, 2014, November
25, 2015, February 19, 2016, February
22, 2016, and March 16, 2016.
HEARING OR NOTIFICATION OF HEARING:
An order granting the application will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on April 18, 2016, and
should be accompanied by proof of
service on the applicants, in the form of
an affidavit or, for lawyers, a certificate
of service. Pursuant to Rule 0–5 under
the Act, hearing requests should state
the nature of the writer’s interest, any
facts bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
ADDRESSES: Secretary, U.S. Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
Applicants: Trust: James P. Ash, Esq.,
Gemini Fund Services LLC, 80 Arkay
Drive, Suite 110, Hauppage, NY 11788
and Adviser: Princeton Fund Advisors,
LLC, 1125 17th Street, Suite 1400,
Denver, CO 80202.
FOR FURTHER INFORMATION CONTACT: Jean
E. Minarick, Senior Counsel, at (202)
551–6811, or Daniele Marchesani,
Branch Chief, at (202) 551–6821
(Division of Investment Management,
Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
Web site by searching for the file
number, or an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
APPLICANTS:
Summary of the Application
1. The Adviser will serve as the
investment adviser to the Funds
pursuant to an investment advisory
agreement with the Trust (the ‘‘Advisory
E:\FR\FM\25MRN1.SGM
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]]>Agencies
[Federal Register Volume 81, Number 58 (Friday, March 25, 2016)]
[Notices]
[Pages 16245-16247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-06747]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77413; File No. SR-ICC-2016-003]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change To Revise the ICC Operational Risk
Management Framework
March 21, 2016.
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 March 10, 2016, 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 principal purpose of the proposed rule change is to update
ICC's Operational Risk Management Framework. These revisions do not
require any changes to the ICC Clearing 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 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 proposes updates to the ICC Operational Risk Management
Framework. ICC believes such revisions 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 revisions are described in detail as follows.
The ICC Operational Risk Management Framework details ICC's dynamic
and independent program of risk assessment and oversight, managed by
the Operational Risk Manager (``ORM''), which aims to reduce
operational incidents, encourage process and control improvement, bring
transparency to operational performance standard monitoring, and
fulfill regulatory obligations. ICC proposes organizational changes to
its Operational Risk Management Framework related to its operational
risk management processes.
ICC has revised the Operational Risk Management Framework to frame
its existing operational risk program and processes around an
operational risk lifecycle, designed to highlight certain aspects of
the processes and present the processes in a more efficient manner. The
operational risk lifecycle utilized by ICC has five components:
Identify, assess, monitor, mitigate and report. Each of these lifecycle
components are first defined generally in the document then applied to
each of ICC's two operational risk processes: Risk assessment; and
performance objectives setting and monitoring. Specifically, the
content for each risk process has been reorganized to fall into each of
the operational risk lifecycle components (i.e., identify, assess,
monitor, mitigate, and report). For completion purposes,
[[Page 16246]]
ICC added information regarding the `assess' and `report' component of
the risk assessment process. Specifically, ICC assesses each of its
risk scenarios to determine the inherent risk rating associated with
the occurrence of an event or incident, as well as assess the
effectiveness of any relevant risk controls. Further, in the `report'
component, ICC clarified that the ORM presents operational risk
reporting to an internal committee which includes members of senior
management. The responsibilities of the ORM, which were previously
listed out in the document, were incorporated into the risk lifecycles.
The ORM will continue to provide management and staff with advice and
guidance related to the development of controls designed to increase
performance and reduce processing risk, as part of the `mitigate' risk
lifecycle component. Similarly, the responsibilities of senior
management, which were previously listed out in the document, were
incorporated into the risk lifecycles.
ICC has categorized those aspects of the operational risk
management program which do not fall within this lifecycle as
``Operational Risk Focus Areas.'' These risk focus areas include:
Business continuity planning and disaster recovery; vendor assessment;
new products and initiatives; information security; and technology
control functions. ICC has reorganized the order of these risk focus
areas to better distinguish which functions may, with oversight by the
ORM, be outsourced to Intercontinental Exchange, Inc. (``ICE, Inc.'')
or performed by departments dedicated to that particular risk area.
ICC has made several clarifying and organizational enhancements to
the various risk focus area descriptions. Further, specific details
contained within other ICC policies and procedures were removed and
described more generally within the Operational Risk Management
Framework, in an effort to reduce redundancy amongst ICC policies and
procedures. ICC continues to maintain business continuity planning and
disaster recovery as two separate programs with separate and distinct
components; however, ICC has grouped the description of these programs
together for purposes of the Operational Risk Management Framework. ICC
enhanced the ``Vendor Assessment'' risk focus area description to note
that the ORM is responsible for conducting a service provider risk
assessment for critical vendors, and to list the specific steps taken
as part of such risk assessment. ICC also enhanced the ``Information
Security'' risk focus area description to note that the ICE, Inc.
Information Security Department conducts its own risk assessments
related to information security and physical security/environmental
controls, pursuant to internal policies which are maintained by an ICE,
Inc. internal committee. Information regarding the Firm Wide Incident
Management Program was included in the new `Technology Controls
Section.' ICC enhanced the `Technology Control Functions' risk focus
area description to note that the ICC Systems Operations team is
responsible for executing daily clearing functions within established
service expectations and performing incident management. ICC described
this incident management process generally within the framework, and
removed more detailed aspects of the program which are contained in
specific program documentation.
General information regarding the development and enforcement of a
firm-wide operational risk framework was removed, as the revised
framework more clearly lays out in each particular section who is
responsible for the development and enforcement of that component of
the operational risk management framework. Information regarding the
human resource reporting line of the ORM and specific references to
titles of documents utilized as part of the risk assessment process
were removed. As the Vendor Risk Management policy was retired and
encompassed within the Operational Risk Management Framework, reference
to the policy was removed from the document. ICC removed internal audit
responsibilities from the Operational Risk Management Framework as such
responsibilities are contained within internal audit documentation.
The overall governance of the Operational Risk Framework has been
updated to reflect current practices. Specifically, material amendments
are reviewed by the Risk Committee, and approved by the Board. The
Board reviews the Operational Risk Management Framework at least
annually.
Other non-material changes were made to the framework to enhance
readability. Previously, ICC included regulatory requirements and
industry guidance information within the framework; this information
has been moved to a separate appendix to the framework. Further,
information regarding Regulation Systems, Compliance, and Integrity has
been added for completeness. Certain information regarding governance
and governing committees has been resituated to the reporting section
of the relevant operational risk lifecycle. Similarly, information
regarding the roles and responsibilities of the ORM and senior
management has been resituated to the appropriate section the
operational risk lifecycle.
Section 17A(b)(3)(F) of the Act \3\ requires, among other things,
that the rules of a clearing agency be designed to protect investors
and the public interest and to comply with the provisions of the Act
and the rules and regulations thereunder. ICC believes that the
proposed rule changes are 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),\4\ because ICC believes that the
proposed rule changes will protect investors and the public interest,
as the reorganization of ICC's existing operational risk processes
around the operational risk lifecycle promotes readability and
efficiency, and alleviates potential confusion throughout the
Operational Risk Management Framework. In addition, the proposed
revisions are consistent with the relevant requirements of Rule 17Ad-
22.\5\ The changes to the ICC Operational Risk Management Framework
further ensure that ICC, through its operational risk program, is able
to identify sources of operational risk and minimize them through the
development of appropriate systems, control, and procedures. Thus, the
changes are reasonably designed to meet the operational risk
requirements of Rule 17Ad-22(d)(4).\6\ As such, the proposed changes
are designed to promote the prompt and accurate clearance and
settlement of securities transactions, derivatives agreements,
contracts, and transactions within the meaning of Section 17A(b)(3)(F)
\7\ of the Act.
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\3\ 15 U.S.C. 78q-1(b)(3)(F).
\4\ Id.
\5\ 17 CFR 240.17Ad-22.
\6\ 17 CFR 240.17Ad-22(d)(4).
\7\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition
ICC does not believe the proposed rule changes would have any
impact, or impose any burden, on competition. The ICC Operational Risk
Management Framework applies uniformly across all market participants.
Therefore, ICC does not believe the proposed rule changes impose any
burden on competition that is inappropriate in furtherance of the
purposes of the Act.
[[Page 16247]]
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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date 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 such proposed rule change, or
(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-2016-003 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-2016-003. 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/clear-credit/regulation.
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-2016-003
and should be submitted on or before April 15, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Brent J. Fields,
Secretary.
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\8\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2016-06747 Filed 3-24-16; 8:45 am]
BILLING CODE 8011-01-P
