Product Change-Priority Mail Negotiated Service Agreement, 16244 [2017-06425]
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16244
Federal Register / Vol. 82, No. 62 / Monday, April 3, 2017 / Notices
2017.3 The Commission received no
comment letters regarding the proposed
change. For the reasons discussed
below, the Commission is approving the
proposed rule change.
POSTAL SERVICE
Product Change—Priority Mail
Negotiated Service Agreement
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Effective date: April 3, 2017.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on March 27, 2017,
it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Contract 299 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2017–100,
CP2017–147.
SUMMARY:
Stanley F. Mires,
Attorney, Federal Compliance.
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80324; File No. SR–ICC–
2017–002]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Order Approving
Proposed Rule Change To Revise
Liquidity Thresholds for Euro
Denominated Products
March 28, 2017.
mstockstill on DSK3G9T082PROD with NOTICES
I. Introduction
On January 27, 2017, 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
(SR–ICC–2017–002) to amend the ICC
Clearing Rules, the ICC Treasury
Operations Policies and Procedures and
the ICC Liquidity Risk Management
Framework to update ICC’s liquidity
thresholds for non-client Euro
denominated products. The proposed
rule change was published for comment
in the Federal Register on February 14,
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
18:32 Mar 31, 2017
Jkt 241001
ICC has proposed changes to
Schedule 401 of its Clearing Rules,
Treasury Operations Policies and
Procedures and Liquidity Risk
Management Framework. The proposed
changes will reduce Clearing
Participants’ Non-Client Initial Margin
and Guaranty Fund Liquidity
Requirements (‘‘Non-Client Liquidity
Requirements’’) for products
denominated in Euros from 65% Euro
cash to 45% Euro cash.4 The proposed
rule change further gives Clearing
Participants the option of posting the
next 20% of Non-Client Liquidity
Requirements for these products in
either Euro or US Dollar cash. The
proposed rule change does not alter
Clearing Participants’ existing ability to
post the final 35% of their Non-Client
Liquidity requirements in US Treasuries
or cash issued by any G7 nation.
III. Discussion and Commission
Findings
[FR Doc. 2017–06425 Filed 3–31–17; 8:45 am]
1 15
II. Description of the Proposed Rule
Change
Section 19(b)(2)(C) of the Act 5 directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if it finds that such
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to such organization. Section
17A(b)(3)(F) of the Act requires,6 among
other things, that the rules of a
registered 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. Rule
17Ad–22(d)(3) 7 requires that a
registered clearing agency shall
establish, implement, maintain, and
enforce written policies and procedures
reasonably designed to hold assets in a
manner that minimizes risk of loss or of
delay in its access to them.
The Commission finds that the
proposed rule change, which adjusts the
amount of Euro cash required in respect
of non-client Euro denominated
products, is consistent with Section 17A
of the Act and Rule 17Ad–22
thereunder. The proposed rule change
should not impact ICC’s access to
liquidity in the event of a clearing
participant’s default. ICC represented
that ‘‘the 45% minimum percentage
requirement is equivalent to the
maximum assumed one day movement
in Initial Margin (assuming a 5-day risk
horizon).’’ 8 Moreover, if additional Euro
cash is needed, ICC asserts that it can
rely on its committed foreign exchange
facility for settled spot dollar-to-Euro
foreign exchange transactions.9
Accordingly, because there is unlikely
to be a diminution in ICC’s ability to
meet its obligations, this proposed rule
change is consistent with the prompt
and accurate clearance and settlement
requirement of Section 17A(b)(3)(F) of
the Act.10
The proposed rule change also is
consistent with the requirements in
Section 17A(b)(3)(F) and Rule 17Ad–
22(d)(3) that assets of a clearinghouse be
safeguarded. As noted above, the
proposed rule change now permits ICC’s
Clearing Participants to post an
additional 20% of their Non-Client
Liquidity Requirements in US Dollars.
ICC in turn has represented that ‘‘to the
extent possible, ICC deposits US Dollar
cash in its account at the Federal
Reserve Bank of Chicago.’’ 11 Thus,
giving ICC’s Clearing Participants the
option to post additional US Dollar
cash, which may result in an increased
amount of funds on deposit with a
Federal Reserve Bank should further
assure the safeguarding of those funds
and minimize the risk of loss or delay
in access to those funds, consistent with
Section 17A(b)(3)(F) of the Act,12 and
Rule 17Ad–22(d)(3).13
IV. Conclusion
It is therefore ordered pursuant to
Section 19(b)(2) of the Act that the
proposed rule change (SR–ICC–2017–
002) be, and hereby is, approved.14
8 Notice,
3 Securities
Exchange Act Release No. 34–79988
(February 8, 2017), 82 FR 10611 (February 14, 2017)
(SR–ICC–2017–002) (‘‘Notice’’).
4 Capitalized terms used in this order, but not
defined herein, have the same meaning as in the
ICC Clearing Rules.
5 15 U.S.C. 78s(b)(2)(C).
6 15 U.S.C. 78q–1(b)(3)(F).
7 17 CFR 240.17Ad–22(d)(3).
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
82 FR at 10612.
9 Id.
10 15
U.S.C. 78q–1(b)(3)(F).
82 FR at 10612.
12 15 U.S.C. 78q–1(b)(3)(F).
13 17 U.S.C. 240.17Ad–22(d)(3).
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).
11 Notice,
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]]>Agencies
[Federal Register Volume 82, Number 62 (Monday, April 3, 2017)]
[Notices]
[Page 16244]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06425]
[[Page 16244]]
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POSTAL SERVICE
Product Change--Priority Mail Negotiated Service Agreement
AGENCY: Postal ServiceTM.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Postal Service gives notice of filing a request with the
Postal Regulatory Commission to add a domestic shipping services
contract to the list of Negotiated Service Agreements in the Mail
Classification Schedule's Competitive Products List.
DATES: Effective date: April 3, 2017.
FOR FURTHER INFORMATION CONTACT: Elizabeth A. Reed, 202-268-3179.
SUPPLEMENTARY INFORMATION: The United States Postal Service[supreg]
hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on
March 27, 2017, it filed with the Postal Regulatory Commission a
Request of the United States Postal Service to Add Priority Mail
Contract 299 to Competitive Product List. Documents are available at
www.prc.gov, Docket Nos. MC2017-100, CP2017-147.
Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2017-06425 Filed 3-31-17; 8:45 am]
BILLING CODE 7710-12-P
