Sunshine Act Meeting, 78678 [2016-27029]
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Federal Register / Vol. 81, No. 216 / Tuesday, November 8, 2016 / Notices
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to the need for knowledge of spread
levels across the entire term structure.
Additionally, to facilitate replication
of the enhanced liquidity charge
calculations, ICC will provide end-ofday data for instruments in which
clients have open positions, allowing for
additional transparency and easier
replication for clients who wish to
estimate liquidity charges for
hypothetical and current positions.
ICC also proposes updating liquidity
scaling factors to reflect the
methodology enhancements. There is no
price based component under the
current methodology. To reflect the
introduction of a price based
component, the liquidity scaling factors
will be decomposed and adjusted in
order to maintain the same overall
composition with both price and spread
based components.
ICC has also proposed minor
clarifying edits to the ICC Risk
Management Framework and the ICC
Risk Management Model Description
document. ICC will add language to the
Overview section of the Risk
Management Framework to identify
which ICC documents provide
additional details regarding ICC’s risk
management approach. ICC will add
language to the Governance and
Organization section of the Risk
Management Framework to note that the
reporting line of ICC’s Chief Risk Officer
to the Chairperson of the ICC Risk
Committee, who is also a non-executive
manager on the Board, allows the Chief
Risk Officer to bring any issues or
concerns directly to the Board without
intermediation by other ICC personnel.
ICC will also make edits to the
Governance and Organization section of
the Risk Management Framework to
revise the list of documents reviewed by
the Risk Committee on at least an
annual basis to include the ICC End-ofDay Price Discovery Policies and
Procedures and the ICC Operational
Risk Management Framework. Finally,
ICC will add minor clarifying details to
the technical calculation descriptions
set forth in the ICC Risk Management
Model Description document,
specifically in the Recovery Rate
Sensitivity Risk Analysis, Interest Rate
Sensitivity Risk Analysis, Spread Risk
Analysis, and Guaranty Fund Size
Estimation sections.
III. Discussion and Commission
Findings
Section 19(b)(2)(C) of the Act 5 directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if the Commission finds
5 15
U.S.C. 78s(b)(2)(C).
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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 6 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 7 and the rules and regulations
thereunder applicable to ICC. ICC
asserts that the proposed change will
simplify its initial margin methodology
and lead to more stable initial margin
requirements. The Commission believes
that ICC’s proposed revisions to the ICC
Risk Management Framework and the
ICC Risk Model Description Document,
including the introduction of minimum
liquidity requirements for the relevant
instruments that do not decay over time
and therefore are independent of
instrument maturities, are reasonably
designed to meet the margin and
financial resource requirements of Rule
17Ad–22(b)(2–3).8 In addition, the
Commission believes that the revised
methodology should assist market
participants clearing or deciding
whether to clear instruments through
ICC to estimate liquidity charges for
hypothetical and current positions. This
enhancement in transparency is
consistent with Rule 17Ad–22(d)(9),9
which requires clearing agencies to
establish, implement, maintain, and
enforce policies and procedures
reasonably designed to provide market
participants with sufficient information
for them to identify and evaluate the
risks and costs associated with using its
service.
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 10 and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (File No. SR–ICC–
2016–010) be, and hereby is,
approved.12
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Brent J. Fields,
Secretary.
[FR Doc. 2016–26906 Filed 11–7–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a closed meeting
on Thursday, November 10, 2016, at 2
p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (a)(5), (a)(7),
(a)(9)(ii), and (a)(10), permit
consideration of the scheduled matter at
the closed meeting.
Chair White, as duty officer, voted to
consider the items listed for the closed
meeting in closed session.
The subject matter of the closed
meeting will be:
Institution and settlement of
administrative proceedings; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact Brent J. Fields from the Office of
the Secretary at (202) 551–5400.
Dated: November 3, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016–27029 Filed 11–4–16; 11:15 am]
BILLING CODE 8011–01–P
6 15
U.S.C. 78q–1(b)(3)(F).
7 15 U.S.C. 78q–1.
8 17 CFR 240.17Ad–22(b)(2–3).
9 17 CFR 240.17Ad–22(d)(9).
10 15 U.S.C. 78q–1.
11 15 U.S.C. 78s(b)(2).
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12 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).
13 17 CFR 200.30–3(a)(12).
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[Federal Register Volume 81, Number 216 (Tuesday, November 8, 2016)]
[Notices]
[Page 78678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27029]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Public Law 94-409, that the Securities
and Exchange Commission will hold a closed meeting on Thursday,
November 10, 2016, at 2 p.m.
Commissioners, Counsel to the Commissioners, the Secretary to the
Commission, and recording secretaries will attend the closed meeting.
Certain staff members who have an interest in the matters also may be
present.
The General Counsel of the Commission, or her designee, has
certified that, in her opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(7), (a)(9)(ii), and (a)(10), permit
consideration of the scheduled matter at the closed meeting.
Chair White, as duty officer, voted to consider the items listed
for the closed meeting in closed session.
The subject matter of the closed meeting will be:
Institution and settlement of administrative proceedings; and
Other matters relating to enforcement proceedings.
At times, changes in Commission priorities require alterations in
the scheduling of meeting items.
For further information and to ascertain what, if any, matters have
been added, deleted or postponed, please contact Brent J. Fields from
the Office of the Secretary at (202) 551-5400.
Dated: November 3, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-27029 Filed 11-4-16; 11:15 am]
BILLING CODE 8011-01-P
