Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change To Provide for the Clearance of Additional Credit Default Swap Contracts, 9086-9087 [2017-02185]

Download as PDF 9086 Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–79892; File No. SR–ICC– 2016–014] Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change To Provide for the Clearance of Additional Credit Default Swap Contracts January 27, 2017. I. Introduction On November 18, 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 Rulebook (the ‘‘Rules’’) in order to provide for the clearance of Standard Australian Corporate Single Name CDS contracts (collectively, ‘‘STAC Contracts’’) and Standard Australian Financial Corporate Single Name CDS contracts (collectively, ‘‘STAFC Contracts’’). The proposed rule change was published for comment in the Federal Register on December 7, 2016.3 The Commission did not receive comments on the proposed rule change. On January 18, 2017, the Commission designated a longer period for Commission action on the proposed rule change.4 For the reasons discussed below, the Commission is approving the proposed rule change. mstockstill on DSK3G9T082PROD with NOTICES II. Description of the Proposed Rule Change The rule change adopts rules that provide the basis for ICC to clear additional credit default swap contracts. Specifically, ICC is amending Chapter 26 of the ICC Rules to add Subchapters 26M and 26N to provide for the clearance of STAC and STAFC Contracts, respectively. ICC represents clearing of the additional STAC and STAFC Contracts will not require any changes to ICC’s Risk Management Framework or other policies and procedures constituting rules within the meaning of the Act. ICC represents that STAC Contracts have similar terms to the Standard European Corporate Single Name CDS contracts (‘‘STEC Contracts’’) currently cleared by ICC and governed by 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Securities Exchange Act Release No. 79439 (December 1, 2016), 81 FR 88291 (December 7, 2016) (SR–ICC–2016–014). 4 Securities Exchange Act Release No. 79821 (January 18, 2017), 82 FR 8450 (January 25, 2017) (SR–ICC–2016–014). 2 17 VerDate Sep<11>2014 16:31 Feb 01, 2017 Jkt 241001 Subchapter 26G of the ICC Rules. Therefore, ICC states that the rules found in Subchapter 26M largely mirror the ICC Rules for STEC Contracts in Subchapter 26G, with certain modifications that reflect differences in terms and market conventions between those contracts and STAC Contracts. STAC Contracts will be denominated in United States Dollars. ICC Rule 26M–102 (Definitions) sets forth the definitions used for the STAC Contracts. ICC represents that the definitions are substantially the same as the definitions found in Subchapter 26G of the ICC Rules, other than certain conforming changes. Similarly, ICC states that its Rules 26M–203 (Restriction on Activity), 26M–206 (Notices Required of Participants with respect to STAC Contracts), 26M–303 (STAC Contract Adjustments), 26M–309 (Acceptance of STAC Contracts by ICE Clear Credit), 26M–315 (Terms of the Cleared STAC Contract), 26M–316 (Relevant Physical Settlement Matrix Updates), 26M–502 (Specified Actions), and 26M–616 (Contract Modification) reflect or incorporate the basic contract specifications for STAC Contracts and are substantially the same as under Subchapter 26G of the ICC Rules. ICC states that STAFC Contracts have similar terms to the Standard European Financial Corporate Single Name CDS contracts (‘‘STEFC Contracts’’) currently cleared by ICC and governed by Subchapter 26H of the ICC Rules. Thus, ICC represents that the rules found in Subchapter 26N largely mirror the ICC Rules for STEFC Contracts in Subchapter 26H, with certain modifications that reflect differences in terms and market conventions between those contracts and STAFC Contracts. STAFC Contracts will be denominated in United States Dollars. ICC Rule 26N–102 (Definitions) sets forth the definitions used for the STAFC Contracts. ICC states that the definitions are substantially the same as the definitions found in Subchapter 26H of the ICC Rules, other than certain conforming changes. ICC represents that its Rules 26N–203 (Restriction on Activity), 26N–206 (Notices Required of Participants with respect to STAFC Contracts), 26N–303 (STAFC Contract Adjustments), 26N–309 (Acceptance of STAFC Contracts by ICE Clear Credit), 26N–315 (Terms of the Cleared STAFC Contract), 26N–316 (Relevant Physical Settlement Matrix Updates), 26N–502 (Specified Actions), and 26N–616 (Contract Modification) reflect or incorporate the basic contract specifications for STAFC Contracts and are substantially the same as under Subchapter 26H of the ICC Rules. PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 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 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 that, 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 the custody or control of the clearing agency or for which it is responsible and, in general, to protect investors and the public interest. The Commission finds that the rule change is consistent with the requirements of Section 17A of the Act 7 and the rules and regulations thereunder applicable to ICC. The rule changes expands clearing to additional products, the STAC and STAFC credit default swap contracts, thus promoting the prompt and accurate clearance and settlement of securities transactions and, to the extent applicable, derivative agreements, contracts, and transactions. ICC represents that the STAC and STAFC contracts are similar to the STEC and STEFC Contracts that ICC currently clears, and that the STAC and STAFC Contracts will be cleared pursuant to ICC’s existing clearing arrangements and related financial safeguards, protections and risk management procedures. Clearing of the STAC and STAFC Contracts will thus allow market participants an increased ability to manage risk, while ensuring the safeguarding of margin assets pursuant to clearing house rules. Therefore, the Commission believes that acceptance of the STAC and STAFC Contracts, on the terms and conditions set out in the Rules, is consistent with the prompt and accurate clearance of and settlement of securities transactions and derivative agreements, contracts and transactions cleared by ICC, the safeguarding of securities and funds in the custody or control of ICC, and the protection of investors and the public interest, within the meaning of Section 17A(b)(3)(F) of the Act.8 5 15 U.S.C. 78s(b)(2)(C). U.S.C. 78q–1(b)(3)(F). 7 15 U.S.C. 78q–1. 8 15 U.S.C. 78q–1(b)(3)(F). 6 15 E:\FR\FM\02FEN1.SGM 02FEN1 Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices 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 9 and the rules and regulations thereunder. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,10 that the proposed rule change (File No. SR–ICC– 2016–014) be, and hereby is, approved.11 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2017–02185 Filed 2–1–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. IC–32456] Notice of Applications for Deregistration Under Section 8(f) of the Investment Company Act of 1940 mstockstill on DSK3G9T082PROD with NOTICES January 27, 2017. The following is a notice of applications for deregistration under section 8(f) of the Investment Company Act of 1940 for the month of January 2017. A copy of each application may be obtained via the Commission’s Web site by searching for the file number, or for an applicant using the Company name box, at http://www.sec.gov/search/ search.htm or by calling (202) 551– 8090. An order granting each application will be issued unless the SEC orders a hearing. Interested persons may request a hearing on any application by writing to the SEC’s Secretary at the address below and serving the relevant applicant with a copy of the request, personally or by mail. Hearing requests should be received by the SEC by 5:30 p.m. on February 21, 2017, and should be accompanied by proof of service on 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 9 15 U.S.C. 78q–1. 10 15 U.S.C. 78s(b)(2). 11 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). 12 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 16:31 Feb 01, 2017 Jkt 241001 to be notified of a hearing may request notification by writing to the Commission’s Secretary. The Commission: Secretary, U.S. Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. ADDRESSES: FOR FURTHER INFORMATION CONTACT: Jessica Shin, Attorney-Adviser, at (202) 551–5921 or Chief Counsel’s Office at (202) 551–6821; SEC, Division of Investment Management, Chief Counsel’s Office, 100 F Street NE., Washington, DC 20549–8010. Nuveen New York Performance Plus Municipal Fund Inc. [File No. 811–05931] Summary: Applicant, a closed-end investment company, seeks an order declaring that it has ceased to be an investment company. The applicant has transferred its assets to Nuveen New York Dividend Advantage Municipal Fund and, on May 26, 2015, made a final distribution to its shareholders based on net asset value. Expenses of approximately $38,358 incurred in connection with the reorganization were paid by applicant and approximately $283,472 were paid by the acquiring fund. Filing Dates: The application was filed on January 22, 2016, and amended on November 14, 2016, and December 14, 2016. Applicant’s Address: 333 West Wacker Drive, Chicago, Illinois 60606. Corsair Opportunity Fund [File No. 811–22978] Summary: Applicant, a closed-end investment company, seeks an order declaring that it has ceased to be an investment company. On December 15, 2016, applicant made a liquidating distribution to its shareholders, based on net asset value. Expenses of $5,009 incurred in connection with the liquidation were paid by applicant’s investment adviser. Filing Date: The application was filed on December 16, 2016. Applicant’s Address: 366 Madison Avenue, 12th Floor, New York, New York 10017. SmartX ETF Trust [File No. 811–22825] Summary: Applicant seeks an order declaring that it has ceased to be an investment company. Applicant has never made a public offering of its securities and does not propose to make a public offering or engage in business of any kind. PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 9087 Filing Dates: The application was filed on December 9, 2016, and amended on January 5, 2017. Applicant’s Address: c/o Guinness Atkinson Asset Management Inc., 21550 Oxnard Street, Suite 850, Woodland Hills, California 91367. Vantagepoint Funds [File No. 811–08941] Summary: Applicant seeks an order declaring that it has ceased to be an investment company. On October 14, 2016, applicant made a final liquidating distribution to its shareholders, based on net asset value. Applicant has established a liquidating trust to provide for the payment of certain identified contingent claims with respect to certain series of applicant. The parent company of applicant’s investment adviser serves as administrator of the liquidating trust. Assets remaining in the liquidating trust will be distributed to its beneficiaries after the satisfaction of all claims. Expenses of $1,693,244 incurred in connection with the liquidation were paid by applicant and applicant’s investment adviser. Applicant has retained $4,232,893 in cash and cash equivalents at its custodian bank to pay for certain accrued liabilities. Filing Dates: The application was filed on November 14, 2016 and amended on January 5, 2017. Applicant’s Address: 777 North Capitol Street NE., Suite 600, Washington, District of Columbia 20002. Matthews A Share Selections Fund, LLC [File No. 811–22809] Summary: Applicant seeks an order declaring that it has ceased to be an investment company. On September 30, 2016, applicant made a liquidating distribution to its shareholders, based on net asset value. Expenses of approximately $40,000 incurred in connection with the liquidation were paid by the former sole shareholder of each series of applicant. Applicant has retained a de minimis amount for the purpose of completing certain regulatory and liquidation activities in China. These de minimis amounts will be paid to the former sole shareholder of each series of applicant. Filing Dates: The application was filed on October 20, 2016, and amended on December 19, 2016 and January 5, 2017. Applicant’s Address: Four Embarcadero Center, Suite 550, San Francisco, California 94111. E:\FR\FM\02FEN1.SGM 02FEN1

Agencies

[Federal Register Volume 82, Number 21 (Thursday, February 2, 2017)]
[Notices]
[Pages 9086-9087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02185]



[[Page 9086]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79892; File No. SR-ICC-2016-014]


Self-Regulatory Organizations; ICE Clear Credit LLC; Order 
Approving Proposed Rule Change To Provide for the Clearance of 
Additional Credit Default Swap Contracts

January 27, 2017.

I. Introduction

    On November 18, 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 
Rulebook (the ``Rules'') in order to provide for the clearance of 
Standard Australian Corporate Single Name CDS contracts (collectively, 
``STAC Contracts'') and Standard Australian Financial Corporate Single 
Name CDS contracts (collectively, ``STAFC Contracts''). The proposed 
rule change was published for comment in the Federal Register on 
December 7, 2016.\3\ The Commission did not receive comments on the 
proposed rule change. On January 18, 2017, the Commission designated a 
longer period for Commission action on the proposed rule change.\4\ For 
the reasons discussed below, the Commission is approving the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 79439 (December 1, 
2016), 81 FR 88291 (December 7, 2016) (SR-ICC-2016-014).
    \4\ Securities Exchange Act Release No. 79821 (January 18, 
2017), 82 FR 8450 (January 25, 2017) (SR-ICC-2016-014).
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II. Description of the Proposed Rule Change

    The rule change adopts rules that provide the basis for ICC to 
clear additional credit default swap contracts. Specifically, ICC is 
amending Chapter 26 of the ICC Rules to add Subchapters 26M and 26N to 
provide for the clearance of STAC and STAFC Contracts, respectively. 
ICC represents clearing of the additional STAC and STAFC Contracts will 
not require any changes to ICC's Risk Management Framework or other 
policies and procedures constituting rules within the meaning of the 
Act.
    ICC represents that STAC Contracts have similar terms to the 
Standard European Corporate Single Name CDS contracts (``STEC 
Contracts'') currently cleared by ICC and governed by Subchapter 26G of 
the ICC Rules. Therefore, ICC states that the rules found in Subchapter 
26M largely mirror the ICC Rules for STEC Contracts in Subchapter 26G, 
with certain modifications that reflect differences in terms and market 
conventions between those contracts and STAC Contracts. STAC Contracts 
will be denominated in United States Dollars.
    ICC Rule 26M-102 (Definitions) sets forth the definitions used for 
the STAC Contracts. ICC represents that the definitions are 
substantially the same as the definitions found in Subchapter 26G of 
the ICC Rules, other than certain conforming changes. Similarly, ICC 
states that its Rules 26M-203 (Restriction on Activity), 26M-206 
(Notices Required of Participants with respect to STAC Contracts), 26M-
303 (STAC Contract Adjustments), 26M-309 (Acceptance of STAC Contracts 
by ICE Clear Credit), 26M-315 (Terms of the Cleared STAC Contract), 
26M-316 (Relevant Physical Settlement Matrix Updates), 26M-502 
(Specified Actions), and 26M-616 (Contract Modification) reflect or 
incorporate the basic contract specifications for STAC Contracts and 
are substantially the same as under Subchapter 26G of the ICC Rules.
    ICC states that STAFC Contracts have similar terms to the Standard 
European Financial Corporate Single Name CDS contracts (``STEFC 
Contracts'') currently cleared by ICC and governed by Subchapter 26H of 
the ICC Rules. Thus, ICC represents that the rules found in Subchapter 
26N largely mirror the ICC Rules for STEFC Contracts in Subchapter 26H, 
with certain modifications that reflect differences in terms and market 
conventions between those contracts and STAFC Contracts. STAFC 
Contracts will be denominated in United States Dollars.
    ICC Rule 26N-102 (Definitions) sets forth the definitions used for 
the STAFC Contracts. ICC states that the definitions are substantially 
the same as the definitions found in Subchapter 26H of the ICC Rules, 
other than certain conforming changes. ICC represents that its Rules 
26N-203 (Restriction on Activity), 26N-206 (Notices Required of 
Participants with respect to STAFC Contracts), 26N-303 (STAFC Contract 
Adjustments), 26N-309 (Acceptance of STAFC Contracts by ICE Clear 
Credit), 26N-315 (Terms of the Cleared STAFC Contract), 26N-316 
(Relevant Physical Settlement Matrix Updates), 26N-502 (Specified 
Actions), and 26N-616 (Contract Modification) reflect or incorporate 
the basic contract specifications for STAFC Contracts and are 
substantially the same as under Subchapter 26H of the ICC Rules.

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 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 \6\ requires that, 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 the 
custody or control of the clearing agency or for which it is 
responsible and, in general, to protect investors and the public 
interest.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(2)(C).
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission finds that the rule change is consistent with the 
requirements of Section 17A of the Act \7\ and the rules and 
regulations thereunder applicable to ICC. The rule changes expands 
clearing to additional products, the STAC and STAFC credit default swap 
contracts, thus promoting the prompt and accurate clearance and 
settlement of securities transactions and, to the extent applicable, 
derivative agreements, contracts, and transactions. ICC represents that 
the STAC and STAFC contracts are similar to the STEC and STEFC 
Contracts that ICC currently clears, and that the STAC and STAFC 
Contracts will be cleared pursuant to ICC's existing clearing 
arrangements and related financial safeguards, protections and risk 
management procedures. Clearing of the STAC and STAFC Contracts will 
thus allow market participants an increased ability to manage risk, 
while ensuring the safeguarding of margin assets pursuant to clearing 
house rules. Therefore, the Commission believes that acceptance of the 
STAC and STAFC Contracts, on the terms and conditions set out in the 
Rules, is consistent with the prompt and accurate clearance of and 
settlement of securities transactions and derivative agreements, 
contracts and transactions cleared by ICC, the safeguarding of 
securities and funds in the custody or control of ICC, and the 
protection of investors and the public interest, within the meaning of 
Section 17A(b)(3)(F) of the Act.\8\
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    \7\ 15 U.S.C. 78q-1.
    \8\ 15 U.S.C. 78q-1(b)(3)(F).

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[[Page 9087]]

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 \9\ and the 
rules and regulations thereunder.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (File No. SR-ICC-2016-014) be, 
and hereby is, approved.\11\
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ 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).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2017-02185 Filed 2-1-17; 8:45 am]
BILLING CODE 8011-01-P