Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change To Revise the ICC Treasury Operations Policies and Procedures, 55254-55256 [2016-19688]
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55254
Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Notices
increased the contestability of that
market. While BDs have previously
published their proprietary data
individually, Regulation NMS
encourages market data vendors and
BDs to produce proprietary products
cooperatively in a manner never before
possible. Multiple market data vendors
already have the capability to aggregate
data and disseminate it on a profitable
scale, including Bloomberg and
Thomson Reuters. In Europe, Cinnober
aggregates and disseminates data from
over 40 brokers and multilateral trading
facilities.18
In this environment, a supercompetitive increase in the fees charged
for either transactions or data has the
potential to impair revenues from both
products. ‘‘No one disputes that
competition for order flow is ‘fierce’.’’
NetCoalition I at 539. The existence of
fierce competition for order flow
implies a high degree of price sensitivity
on the part of BDs with order flow, since
they may readily reduce costs by
directing orders toward the lowest-cost
trading venues. A BD that shifted its
order flow from one platform to another
in response to order execution price
differentials would both reduce the
value of that platform’s market data and
reduce its own need to consume data
from the disfavored platform. If a
platform increases its market data fees,
the change will affect the overall cost of
doing business with the platform, and
affected BDs will assess whether they
can lower their trading costs by
directing orders elsewhere and thereby
lessening the need for the more
expensive data.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
rmajette on DSK2TPTVN1PROD with NOTICES
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 Exchange Act 19
and Rule 19b–4(f)(2) thereunder,20
because it establishes or changes a due,
or fee.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend the rule change if
it appears to the Commission that the
18 See https://www.cinnober.com/boat-tradereporting.
19 15 U.S.C. 78s(b)(3)(A)(ii).
20 17 CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
15:05 Aug 17, 2016
Jkt 238001
action is necessary or appropriate in the
public interest, for the protection of
investors, or would otherwise further
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
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–
BOX–2016–40 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–BOX–2016–40. 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–BOX–
Frm 00085
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–19687 Filed 8–17–16; 8:45 am]
BILLING CODE 8011–01–P
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:
PO 00000
2016–40, and should be submitted on or
before September 8, 2016.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78566; File No. SR–ICC–
2016–009]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Order Approving
Proposed Rule Change To Revise the
ICC Treasury Operations Policies and
Procedures
August 12, 2016.
I. Introduction
On June 15, 2016, ICE Clear Credit
LLC (‘‘ICC’’) 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 the ICC Treasury Operations
Policies and Procedures to provide for
the use of a committed foreign exchange
(‘‘FX’’) facility, to make changes to the
investment guidelines as well as
additional clean-up changes, and to
provide additional clarification
regarding the calculation of collateral
haircuts (SR–ICC–2016–009). The
proposed rule change was published for
comment in the Federal Register on
June 30, 2016.3 The Commission did not
receive comments on the proposed rule
change. For the reasons discussed
below, the Commission is approving the
proposed rule change.
II. Description of the Proposed Rule
Change
ICC will revise its Treasury
Operations Policies and Procedures to
provide for the use of a committed FX
facility. ICC has established a
committed FX facility which provides
for same day settled spot FX
transactions. ICC represents that the
facility allows ICC to use available
United States Dollars (‘‘USD’’) to
convert into Euro to meet a Euro
liquidity need, for example in the
21 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 34–78205
(June 30, 2016), 81 FR 44357 (July 7, 2016) (SR–
ICC–2016–009).
1 15
E:\FR\FM\18AUN1.SGM
18AUN1
rmajette on DSK2TPTVN1PROD with NOTICES
Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Notices
unlikely event of a Clearing Participant
default when Euro is needed for
liquidity but only USD is available. In
addition, the policy will be revised to
document that the FX facility will be
tested twice a year.
Additionally, ICC will revise its
Treasury Operations Policies and
Procedures to make changes to the ICC
Treasury Department investment
guidelines for operating capital,
guaranty fund, and margin cash. ICC
will update the list of permitted
investments to add short term US
Treasury securities (with a final
maturity of no greater than 98 days) and
remove Money Market Mutual Funds.
ICC will also update its investment
policy for operating capital to include
Treasury/agency reverse repurchase
(‘‘repo’’) agreements. ICC will update
the governance section of the operating
capital investment policy to note that
the Risk Committee will review any
proposed changes to the policy and
make recommendations to the Board.
Further, ICC will remove reference to an
obsolete financial report.
ICC will make additional clean-up
changes throughout the Treasury
Operations Policies and Procedures.
Specifically, ICC will remove outdated
language stating that ICC treasury
services are provided by The Clearing
Corporation. Further, throughout the
document, ICC will change references to
the ‘‘Director of Operations’’ to the
‘‘Chief Operating Officer,’’ to correctly
reflect the officer title. ICC will remove
reference to specific reverse repo
counterparties to reflect the addition of
multiple reverse repo counterparties.
Further, ICC has noted that it has
arrangements in place to settle tri-party
and bilateral reverse repo transactions,
both of which settle delivery vs.
payment (‘‘DVP’’). As a result, ICC will
clarify references throughout the policy
from ‘‘DVP reverse repo’’ to more
specifically refer to ‘‘bilateral reverse
repo.’’ ICC will remove reference to the
titles of specific agreements that it may
enter into to effect reverse repo
transactions and add general language to
encompass all agreements that may be
required. ICC will remove information
regarding the monitoring of available
liquidity resources and add reference to
the ICC Liquidity Risk Management
Framework. ICC has clarified that its
committed repo facility may be used to
convert sovereign debt into cash and
that the facility will be tested twice per
calendar year. ICC will remove outdated
information under the ‘‘ICE Clear Credit
Banking Relationships’’ section of the
policy and add language stating that ICC
endeavors to maintain banking
relationships with highly creditworthy
VerDate Sep<11>2014
15:05 Aug 17, 2016
Jkt 238001
and reliable bank institutions that
provide operational and strategic
support with respect to holding margin
and guaranty fund cash and collateral.
ICC also will remove references to
specific banking counterparties, as ICC’s
banking relationships have expanded to
include multiple counterparties. ICC
will replace the specific names with a
generic reference, to capture all
counterparties utilized by ICC. ICC also
will update certain SWIFT banking
information throughout the policy.
Further, ICC will update the list of
applications used by the Treasury
Department to perform daily operations.
Finally, ICC will revise its Treasury
Operations Policies and Procedures to
provide additional clarification
regarding the calculation of collateral
haircuts when yield rates are less than
or equal to one basis point. This change
will document current ICC practices as
related to collateral haircut calculation;
there will be no change to the collateral
haircut methodology.
III. Discussion and Commission
Findings
Section 19(b)(2)(C) of the Act 4 directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if the Commission finds
that the 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 5 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
and to comply with the provisions of
the Act and the rules and regulations
thereunder.
The Commission finds that the
proposed rule change is consistent with
the requirements of Section 17A of the
Act 6 and the rules and regulations
thereunder applicable to ICC. ICC
asserts that the changes to provide for
the use of a committed FX facility will
enhance ICC’s liquidity resources, and
the changes to the investment
guidelines will ensure the reliable
investment of assets in ICC’s control
with minimal risk. ICC further asserts
that the additional clean-up changes
will ensure that the documentation of
ICC’s treasury arrangements remains upto-date, clear, and transparent.
Similarly, ICC represents that the
4 15
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1(b)(3)(F).
6 15 U.S.C. 78q–1.
5 15
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
55255
additional clarification regarding the
calculation of collateral haircuts will
promote transparency of ICC’s risk
management practices as related to
collateral haircuts. The Commission
therefore believes that the proposed rule
changes are designed to promote the
prompt and accurate settlement of
securities transactions and, to the extent
applicable, derivatives agreements,
contracts, and transactions, and to
contribute to the safeguarding of
customer funds and securities within
the control of ICC in accordance with
Section 17A(b)(3)(F) of the Act.7
In addition, the Commission finds
that the proposed revisions to the ICC
Treasury Operations Policies and
Procedures are consistent with the
relevant requirements of Rule 17Ad–
22.8 In particular, the use of a
committed FX facility is intended to
further ensure that ICC maintains
sufficient financial resources at all times
to meet the requirements set forth in
Rule 17Ad–22(b)(3).9 Additionally, the
changes to the investment guidelines are
aimed to minimize credit, market, and
liquidity risks of investment
arrangements. Such changes are
therefore reasonably designed to meet
the requirements of Rule 17Ad–
22(d)(3).10 Finally, the additional cleanup changes and clarification regarding
the calculation of collateral haircuts are
constructed to ensure ICC’s governance
arrangements to remain clear and
transparent, consistent with the
requirements of Rule 17Ad–22(d)(8).11
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 12 and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,13 that the
proposed rule change (File No. SR–ICC–
2016–009) be, and hereby is,
approved.14
7 15
U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22.
9 17 CFR 240.17Ad–22(b)(3).
10 17 CFR 240.17Ad–22(d)(3).
11 17 CFR 240.17Ad–22(d)(8).
12 15 U.S.C. 78q–1.
13 15 U.S.C. 78s(b)(2).
14 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).
8 17
E:\FR\FM\18AUN1.SGM
18AUN1
55256
Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–19688 Filed 8–17–16; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #14797 and #14798]
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of California dated 08/10/
2016.
Incident: Mission and 29th Street
Fire.
Incident Period: 06/18/2016.
DATES: Effective Date: 08/10/2016.
Physical Loan Application Deadline
Date: 10/11/2016.
Economic Injury (EIDL) Loan
Application Deadline Date: 05/10/2017.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: San Francisco.
Contiguous Counties: California:
Alameda, Marin, San Mateo.
The Interest Rates are:
rmajette on DSK2TPTVN1PROD with NOTICES
SUMMARY:
15 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
15:05 Aug 17, 2016
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
Non-Profit Organizations without Credit Available Elsewhere .....................................
(Catalog of Federal Domestic Assistance
Number 59008)
Dated: August 10, 2016.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2016–19761 Filed 8–17–16; 8:45 am]
BILLING CODE 8025–01–P
For Physical Damage:
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Non-Profit Organizations without Credit Available Elsewhere .....................................
2.625
2.625
2.625
The number assigned to this disaster
for physical damage is 14801B and for
economic injury is 14802B
(Catalog of Federal Domestic Assistance
Number 59008)
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #14801 and #14802]
James E. Rivera,
Associate Administrator for Disaster
Assistance.
Wisconsin Disaster #WI–00052
[FR Doc. 2016–19757 Filed 8–17–16; 8:45 am]
U.S. Small Business
Administration.
ACTION: Notice.
BILLING CODE 8025–01–P
AGENCY:
SMALL BUSINESS ADMINISTRATION
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of WISCONSIN (FEMA–4276–
DR), dated 08/09/2016.
Incident: Severe Storms and Flooding.
Incident Period: 07/11/2016 through
07/12/2016.
Effective Date: 08/09/2016.
Physical Loan Application Deadline
Date: 10/11/2016.
Economic Injury (EIDL) Loan
Application Deadline Date: 05/09/2017.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Percent
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
3.250 Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
1.625 hereby given that as a result of the
President’s major disaster declaration on
6.250
08/09/2016, Private Non-Profit
4.000 organizations that provide essential
services of governmental nature may file
2.625 disaster loan applications at the address
listed above or other locally announced
locations.
Jkt 238001
Percent
2.625
The number assigned to this disaster
for physical damage is 14797 5 and for
economic injury is 14798 0.
The State which received an EIDL
Declaration # is California.
California Disaster #CA–00250
For Physical Damage:
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses
without
Credit
Available Elsewhere ..............
Non-Profit Organizations with
Credit Available Elsewhere ...
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties:
2.625
Ashland, Bayfield, Burnett, Douglas,
Florence, Iron, Sawyer, Washburn,
and the Bad River Band of the Lake
Superior Chippewa Tribe
4.000
The Interest Rates are:
Percent
SUMMARY:
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
[Disaster Declaration #14799 and #14800]
Maryland Disaster #MD–00033
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of Maryland dated 08/10/
2016.
Incident: Heavy Rains and Flooding.
Incident Period: 07/30/2016.
DATES: Effective date: 08/10/2016.
Physical Loan Application Deadline
Date: 10/11/2016.
Economic Injury (EIDL) Loan
Application Deadline Date: 05/10/2017.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
SUMMARY:
E:\FR\FM\18AUN1.SGM
18AUN1
]]>Agencies
[Federal Register Volume 81, Number 160 (Thursday, August 18, 2016)]
[Notices]
[Pages 55254-55256]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19688]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78566; File No. SR-ICC-2016-009]
Self-Regulatory Organizations; ICE Clear Credit LLC; Order
Approving Proposed Rule Change To Revise the ICC Treasury Operations
Policies and Procedures
August 12, 2016.
I. Introduction
On June 15, 2016, ICE Clear Credit LLC (``ICC'') 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 the ICC
Treasury Operations Policies and Procedures to provide for the use of a
committed foreign exchange (``FX'') facility, to make changes to the
investment guidelines as well as additional clean-up changes, and to
provide additional clarification regarding the calculation of
collateral haircuts (SR-ICC-2016-009). The proposed rule change was
published for comment in the Federal Register on June 30, 2016.\3\ The
Commission did not receive comments on the proposed rule change. 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. 34-78205 (June 30,
2016), 81 FR 44357 (July 7, 2016) (SR-ICC-2016-009).
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change
ICC will revise its Treasury Operations Policies and Procedures to
provide for the use of a committed FX facility. ICC has established a
committed FX facility which provides for same day settled spot FX
transactions. ICC represents that the facility allows ICC to use
available United States Dollars (``USD'') to convert into Euro to meet
a Euro liquidity need, for example in the
[[Page 55255]]
unlikely event of a Clearing Participant default when Euro is needed
for liquidity but only USD is available. In addition, the policy will
be revised to document that the FX facility will be tested twice a
year.
Additionally, ICC will revise its Treasury Operations Policies and
Procedures to make changes to the ICC Treasury Department investment
guidelines for operating capital, guaranty fund, and margin cash. ICC
will update the list of permitted investments to add short term US
Treasury securities (with a final maturity of no greater than 98 days)
and remove Money Market Mutual Funds. ICC will also update its
investment policy for operating capital to include Treasury/agency
reverse repurchase (``repo'') agreements. ICC will update the
governance section of the operating capital investment policy to note
that the Risk Committee will review any proposed changes to the policy
and make recommendations to the Board. Further, ICC will remove
reference to an obsolete financial report.
ICC will make additional clean-up changes throughout the Treasury
Operations Policies and Procedures. Specifically, ICC will remove
outdated language stating that ICC treasury services are provided by
The Clearing Corporation. Further, throughout the document, ICC will
change references to the ``Director of Operations'' to the ``Chief
Operating Officer,'' to correctly reflect the officer title. ICC will
remove reference to specific reverse repo counterparties to reflect the
addition of multiple reverse repo counterparties. Further, ICC has
noted that it has arrangements in place to settle tri-party and
bilateral reverse repo transactions, both of which settle delivery vs.
payment (``DVP''). As a result, ICC will clarify references throughout
the policy from ``DVP reverse repo'' to more specifically refer to
``bilateral reverse repo.'' ICC will remove reference to the titles of
specific agreements that it may enter into to effect reverse repo
transactions and add general language to encompass all agreements that
may be required. ICC will remove information regarding the monitoring
of available liquidity resources and add reference to the ICC Liquidity
Risk Management Framework. ICC has clarified that its committed repo
facility may be used to convert sovereign debt into cash and that the
facility will be tested twice per calendar year. ICC will remove
outdated information under the ``ICE Clear Credit Banking
Relationships'' section of the policy and add language stating that ICC
endeavors to maintain banking relationships with highly creditworthy
and reliable bank institutions that provide operational and strategic
support with respect to holding margin and guaranty fund cash and
collateral. ICC also will remove references to specific banking
counterparties, as ICC's banking relationships have expanded to include
multiple counterparties. ICC will replace the specific names with a
generic reference, to capture all counterparties utilized by ICC. ICC
also will update certain SWIFT banking information throughout the
policy. Further, ICC will update the list of applications used by the
Treasury Department to perform daily operations.
Finally, ICC will revise its Treasury Operations Policies and
Procedures to provide additional clarification regarding the
calculation of collateral haircuts when yield rates are less than or
equal to one basis point. This change will document current ICC
practices as related to collateral haircut calculation; there will be
no change to the collateral haircut methodology.
III. Discussion and Commission Findings
Section 19(b)(2)(C) of the Act \4\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if the
Commission finds that the 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 \5\ 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 and to
comply with the provisions of the Act and the rules and regulations
thereunder.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2)(C).
\5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with the requirements of Section 17A of the Act \6\ and the rules and
regulations thereunder applicable to ICC. ICC asserts that the changes
to provide for the use of a committed FX facility will enhance ICC's
liquidity resources, and the changes to the investment guidelines will
ensure the reliable investment of assets in ICC's control with minimal
risk. ICC further asserts that the additional clean-up changes will
ensure that the documentation of ICC's treasury arrangements remains
up-to-date, clear, and transparent. Similarly, ICC represents that the
additional clarification regarding the calculation of collateral
haircuts will promote transparency of ICC's risk management practices
as related to collateral haircuts. The Commission therefore believes
that the proposed rule changes are designed to promote the prompt and
accurate settlement of securities transactions and, to the extent
applicable, derivatives agreements, contracts, and transactions, and to
contribute to the safeguarding of customer funds and securities within
the control of ICC in accordance with Section 17A(b)(3)(F) of the
Act.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
\7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
In addition, the Commission finds that the proposed revisions to
the ICC Treasury Operations Policies and Procedures are consistent with
the relevant requirements of Rule 17Ad-22.\8\ In particular, the use of
a committed FX facility is intended to further ensure that ICC
maintains sufficient financial resources at all times to meet the
requirements set forth in Rule 17Ad-22(b)(3).\9\ Additionally, the
changes to the investment guidelines are aimed to minimize credit,
market, and liquidity risks of investment arrangements. Such changes
are therefore reasonably designed to meet the requirements of Rule
17Ad-22(d)(3).\10\ Finally, the additional clean-up changes and
clarification regarding the calculation of collateral haircuts are
constructed to ensure ICC's governance arrangements to remain clear and
transparent, consistent with the requirements of Rule 17Ad-
22(d)(8).\11\
---------------------------------------------------------------------------
\8\ 17 CFR 240.17Ad-22.
\9\ 17 CFR 240.17Ad-22(b)(3).
\10\ 17 CFR 240.17Ad-22(d)(3).
\11\ 17 CFR 240.17Ad-22(d)(8).
---------------------------------------------------------------------------
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 \12\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\13\ that the proposed rule change (File No. SR-ICC-2016-009) be,
and hereby is, approved.\14\
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2).
\14\ 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).
[[Page 55256]]
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19688 Filed 8-17-16; 8:45 am]
BILLING CODE 8011-01-P
