Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Proposed Rule Change, Security-Based Swap Submission, or Advance Notice Relating to the ICC Clearing Rules and the ICC Treasury Operations Policies and Procedures, 31121-31123 [2017-14013]

Download as PDF Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Notices sradovich on DSK3GMQ082PROD with NOTICES is listed on another national securities exchange. The Commission has previously approved substantively identical rules for the listing and trading of ETPs on NYSE Arca and NYSE. The Exchange represents that it will not list, but only trade, ETPs on a UTP basis. The Exchange represents that to trade pursuant to UTP any ETP that is listed and traded on another national securities exchange, NYSE MKT would be required to file Form 19b–4(e) with the Commission. The Commission believes that the Exchange’s proposal does not raise any novel issues, and the proposed rules of the Exchange are consistent with the rules of other national securities exchanges that trade securities, including ETPs.29 Additionally, the Exchange represents, and its proposed rules specify, that NYSE MKT will not list any ETPs unless it first obtains Commission approval of a proposed rule change under Section 19(b)(2) of the Act. Therefore, the provisions of proposed Rules 5E and 8E that permit the listing of ETPs would only be effective if the Commission approves a proposed rule change for the Exchange to amend its rules to comply with Rules 10A–3 and 10C–1 under the Act and to incorporate other applicable listing criteria. Finally, the Commission notes that NYSE MKT has represented that it will be responsible for accepting the obligations applicable to a UTP market, including specific requirements for registered market makers, books and records production, surveillance procedures, suitability and prospectus requirements, and requisite Exchange approvals.30 The Commission believes that the UTP trading on NYSE MKT of NMS stocks, including ETPs, listed on other national securities exchanges is consistent with existing UTP trading of NMS stocks on other national securities exchanges and that is designed to increase competition among the different securities markets to the benefit of market participants. The Commission therefore finds that NYSE MKT’s proposed rules governing trading on a UTP basis on its Pillar platform are consistent with the Act. VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,31 that the proposed rule change (SR–NYSEMKT– 2016–103), as modified by Amendments 29 See, e.g., Rule 14.1 of Bats BYX Exchange, Inc. and Rule 14.1 of Bats EDGA Exchange, Inc. 30 See proposed Rule 5.1E. 31 15 U.S.C. 78s(b)(2). VerDate Sep<11>2014 17:57 Jul 03, 2017 Jkt 241001 No. 1, 2, and 3, be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.32 Robert W. Errett, Deputy Secretary. [FR Doc. 2017–14014 Filed 7–3–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–427, OMB Control No. 3235–0476] Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 20549–2736 Extension: Rule 10b–17 Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the existing collection of information provided for in Rule 10b–17 (17 CFR 240.10b–17), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). The Commission plans to submit this existing collection of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Rule 10b–17 requires any issuer of a class of securities publicly traded by the use of any means or instrumentality of interstate commerce or of the mails or of any facility of any national securities exchange to give notice of the following specific distributions relating to such class of securities: (1) A dividend or other distribution in cash or in kind other than interest payments on debt securities; (2) a stock split or reverse stock split; or (3) a rights or other subscription offering. There are approximately 12,127 respondents per year. These respondents make approximately 27,144 responses per year. Each response takes approximately 10 minutes to complete. Thus, the total compliance burden per year is 4,524 burden hours. The total internal labor cost of compliance for the respondents, associated with producing and filing the reports, is approximately $317,991.96. Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the PO 00000 Commission, including whether the information shall have practical utility; (b) the accuracy of the Commission’s estimates of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. Please direct your written comments to: Pamela Dyson, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington, DC 20549, or send an email to: PRA_ Mailbox@sec.gov. Dated: June 28, 2017. Robert W. Errett, Deputy Secretary. [FR Doc. 2017–14065 Filed 7–3–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–81037; File No. SR–ICC– 2017–010] Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Proposed Rule Change, Security-Based Swap Submission, or Advance Notice Relating to the ICC Clearing Rules and the ICC Treasury Operations Policies and Procedures June 28, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 16, 2017, ICE Clear Credit LLC (‘‘ICC’’) filed with the Securities and Exchange Commission the proposed rule change, securitybased swap submission, or advance notice, 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, security-based swap submission, or advance notice from interested persons. 1 15 32 17 CFR 200.30–3(a)(12). Frm 00083 Fmt 4703 Sfmt 4703 31121 2 17 E:\FR\FM\05JYN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 05JYN1 31122 Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Notices to the ICC Rules and ICC Treasury Policy are described in detail as follows. I. Clearing Agency’s Statement of the Terms of Substance of the Proposed Rule Change The principal purpose of the proposed changes is to make changes to the ICC Clearing Rules (the ‘‘ICC Rules’’) and ICC Treasury Operations Policies and Procedures (‘‘Treasury Policy’’) to remove eligibility of Japanese yen (‘‘JPY’’), Great British pounds (‘‘GBP’’), and Canadian dollars (‘‘CAD’’) to meet Initial Margin and Guaranty Fund requirements. II. Clearing Agency’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. sradovich on DSK3GMQ082PROD with NOTICES (A) Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change ICC Clearing Participants are required to post Initial Margin and contribute to the Guaranty Fund to collateralize their individual credit exposure to ICC. Currently, a Clearing Participant may meet the final 35% of their Initial Margin and Guaranty Fund requirements with JPY, GBP, or CAD, in aggregate. To date, ICC has never received GBP and CAD, and has received small deposits of JPY from a limited number of Clearing Participants (i.e. less than 1% of total margin deposits). JPY, GBP, and CAD are not considered to be ‘liquid’ resources from an ICC perspective, as they must be converted to another currency (USD or Euro). JPY additionally has a significant timing issue related to conversion. Further, ICC has found securitization for these currencies impractical, especially for the small balances of JPY received. For the aforementioned reasons, ICC proposes revising the ICC Rules and ICC Treasury Operations Policies and Procedures to remove eligibility of JPY, GBP, and CAD to meet Initial Margin and Guaranty Fund requirements. Clearing Participants will continue to be able to meet their Initial Margin and Guaranty Fund requirements using Euro cash, U.S. cash and/or U.S. Treasuries, in accordance with the collateral thresholds set forth in Schedule 401 of the ICC Rules. The proposed revisions VerDate Sep<11>2014 17:57 Jul 03, 2017 Jkt 241001 ICC Rules ICC proposes updates to Schedule 401 of the ICC Rules. Specifically, ICC proposes removing references to G7 cash,3 and defining ‘All Eligible Collateral’ for both Non-Client Initial Margin and Guaranty Fund Liquidity Requirements and Client-Related Initial Margin Liquidity Requirements to be U.S. cash, Euro cash, and/or U.S. Treasuries. Under the proposed changes, U.S. cash, Euro cash, and/or U.S. Treasuries will be eligible for meeting the final 35% of Initial Margin and Guaranty Fund requirements for all Non-Client Initial Margin and Guaranty Fund Liquidity Requirements and Client-Related USD denominated Initial Margin Requirements; and U.S. cash, Euro cash, and/or U.S. Treasuries will be eligible for meeting a maximum of 100% of Initial Margin requirements for Client-Related Euro Denominated Product Requirements. ICC Treasury Policy ICC also proposes updates to the ICC Treasury Policy to remove references to CAD, GBP, and JPY as eligible collateral. ICC proposes removing references to CAD, GBP, and JPY in the ‘Collateral Liquidation Assumptions’ tables (for both Euro and U.S. Dollar denominated requirements). Under the proposed changes, the tables will set forth collateral liquidity assumptions for U.S. cash, Euro cash, and U.S. Treasuries only. ICC proposes updating the House Initial Margin and Guaranty Fund Liquidity Requirements (for Non-Client U.S. Dollar and Euro denominated requirements) chart to remove reference to G7 cash and to define ‘All Eligible Collateral’ to be U.S. cash, Euro cash, and/or U.S. Treasuries. ICC proposes updating the list of acceptable forms of collateral for Initial Margin to specifically include U.S. Treasury Securities, U.S. cash, and Euro cash, and to remove the general reference to G7 currencies. ICC also proposes updating the list of acceptable forms of collateral for the Guaranty Fund to include U.S. Treasury Securities, U.S. cash, and Euro cash, and to remove the general reference to G7 currencies. ICC proposes updates to the ‘Eligible Client Collateral’ section of the Treasury Policy to note that ICC’s eligible collateral for client Initial Margin includes U.S. cash, Euro cash, and U.S. government securities in line with current eligible collateral for House exposures (i.e. U.S. Treasuries). ICC also proposes updates to the ‘Client-Related Initial Margin Liquidity Requirements’ section of the Treasury Policy to reflect the proposed liquidity requirement changes, namely U.S. denominated product requirements of 65% U.S. cash and/or U.S. Treasuries, and 35% remainder eligible U.S. cash, U.S. Treasuries, and/or Euro cash; and Euro denominated product requirements of 100% U.S. cash, Euro cash, and/or U.S. Treasuries. Section 17A(b)(3)(F) of the Act 4 requires, 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 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 17A(b)(3)(F),5 because ICC believes that removing eligibility of JPY, GBP, and CAD to meet Initial Margin and Guaranty Fund requirements will promote the prompt and accurate clearance and settlement of securities transactions, derivatives agreements, contracts, and transactions, and contribute to the safeguarding of securities and funds associated with security-based swap transactions in ICC’s custody or control, or for which ICC is responsible. The proposed update will promote the liquidity of ICC collateral. Such changes are consistent with the eligible collateral accepted by other market participants. Further, from a practical standpoint, the proposed updates will have minimal impact on ICC’s financial resource composition, as such currencies have been rarely utilized by Clearing Participants to meet Initial Margin and Guaranty Fund requirements. ICC will continue to accept U.S. cash, Euro cash, and U.S. Treasuries as eligible collateral, in accordance with Schedule 401 of the ICC Rules. Such collateral will continue to be held in a manner whereby risk of loss or of delay in access to them is minimized, consistent with Section 17A(b)(3)(F) 6 and Rule 17Ad–22(d)(3).7 4 15 U.S.C. 78q–1(b)(3)(F). 5 Id. 3 G7 cash includes U.S. cash, Euro cash, JPY, GBP, and CAD. PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 6 Id. 7 17 E:\FR\FM\05JYN1.SGM CFR 240.17Ad–22(d)(3). 05JYN1 Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Notices (B) Clearing Agency’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 changes to ICC’s eligible collateral apply 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. (C) Clearing Agency’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 up to 90 days (i) as the Commission may designate 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. only one method. The Commission will post all comments on the Commission’s internet Web site (http://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–2017–010 and should be submitted on or before July 26, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Robert W. Errett, Deputy Secretary. [FR Doc. 2017–14013 Filed 7–3–17; 8:45 am] Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– ICC–2017–010 on the subject line. sradovich on DSK3GMQ082PROD with NOTICES 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: Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Advance Notice To Adopt a New Stock Options and Futures Settlement Agreement With The Options Clearing Corporation 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–2017–010. 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 June 28, 2017. VerDate Sep<11>2014 17:57 Jul 03, 2017 Jkt 241001 BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–81039; File No. SR–NSCC– 2017–803] Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act entitled the Payment, Clearing, and Settlement Supervision Act of 2010 (‘‘Clearing Supervision Act’’ or ‘‘Payment, Clearing and Settlement Supervision Act’’) 1 and Rule 19b– PO 00000 8 17 1 12 CFR 200.30–3(a)(12). U.S.C. 5465(e)(1). Frm 00085 Fmt 4703 Sfmt 4703 31123 4(n)(1)(i) under the Securities Exchange Act of 1934 (‘‘Act’’),2 notice is hereby given that on June 1, 2017, National Securities Clearing Corporation (‘‘NSCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the advance notice SR–NSCC–2017–803 (‘‘Advance Notice’’) as described in Items I, II and III below, which Items have been prepared by the clearing agency.3 The Commission is publishing this notice to solicit comments on the Advance Notice from interested persons. I. Clearing Agency’s Statement of the Terms of Substance of the Advance Notice This Advance Notice has been filed by NSCC in connection with proposed changes relating to a new Stock Options and Futures Settlement Agreement (‘‘New Accord’’) between NSCC and The Options Clearing Corporation (‘‘OCC,’’ collectively NSCC and OCC may be referred to herein as the ‘‘clearing agencies’’), and proposed amendments to Procedures III and XV of the Rules & Procedures of NSCC (‘‘NSCC Rules’’) to accommodate the proposed provisions of the New Accord, as described in greater detail below.4 II. Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Advance Notice In its filing with the Commission, the clearing agency included statements concerning the purpose of and basis for the Advance Notice and discussed any comments it received on the Advance Notice. The text of these statements may be examined at the places specified in Item IV below. The clearing agency has prepared summaries, set forth in sections A and B below, of the most significant aspects of such statements. 2 17 CFR 240.19b–4(n)(1)(i). June 1, 2017, NSCC filed this Advance Notice as a proposed rule change (SR–NSCC–2017– 007) with the Commission pursuant to Section 19(b)(1) of the Act, 15 U.S.C. 78s(b)(1), and Rule 19b–4, 17 CFR 240.19b–4. A copy of the proposed rule change is available at http://www.dtcc.com/ legal/sec-rule-filings.aspx. The Options Clearing Corporation also has filed proposed rule change and advance notice filings with the Commission in connection with this proposal. See OCC filings SR– OCC–2017–013 and SR–OCC–2017–804. 4 Terms not defined herein are defined in the NSCC Rules, available at http://www.dtcc.com/∼/ media/Files/Downloads/legal/rules/nscc_rules.pdf, or in OCC’s By-Laws and Rules, available at http:// optionsclearing.com/about/publications/bylaws.jsp, as the context implies. 3 On E:\FR\FM\05JYN1.SGM 05JYN1

Agencies

[Federal Register Volume 82, Number 127 (Wednesday, July 5, 2017)]
[Notices]
[Pages 31121-31123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14013]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81037; File No. SR-ICC-2017-010]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice 
Relating to the ICC Clearing Rules and the ICC Treasury Operations 
Policies and Procedures

June 28, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on June 
16, 2017, ICE Clear Credit LLC (``ICC'') filed with the Securities and 
Exchange Commission the proposed rule change, security-based swap 
submission, or advance notice, 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, security-based swap submission, or advance notice from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.

---------------------------------------------------------------------------

[[Page 31122]]

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The principal purpose of the proposed changes is to make changes to 
the ICC Clearing Rules (the ``ICC Rules'') and ICC Treasury Operations 
Policies and Procedures (``Treasury Policy'') to remove eligibility of 
Japanese yen (``JPY''), Great British pounds (``GBP''), and Canadian 
dollars (``CAD'') to meet Initial Margin and Guaranty Fund 
requirements.

II. Clearing Agency'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) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    ICC Clearing Participants are required to post Initial Margin and 
contribute to the Guaranty Fund to collateralize their individual 
credit exposure to ICC. Currently, a Clearing Participant may meet the 
final 35% of their Initial Margin and Guaranty Fund requirements with 
JPY, GBP, or CAD, in aggregate. To date, ICC has never received GBP and 
CAD, and has received small deposits of JPY from a limited number of 
Clearing Participants (i.e. less than 1% of total margin deposits). 
JPY, GBP, and CAD are not considered to be `liquid' resources from an 
ICC perspective, as they must be converted to another currency (USD or 
Euro). JPY additionally has a significant timing issue related to 
conversion. Further, ICC has found securitization for these currencies 
impractical, especially for the small balances of JPY received.
    For the aforementioned reasons, ICC proposes revising the ICC Rules 
and ICC Treasury Operations Policies and Procedures to remove 
eligibility of JPY, GBP, and CAD to meet Initial Margin and Guaranty 
Fund requirements. Clearing Participants will continue to be able to 
meet their Initial Margin and Guaranty Fund requirements using Euro 
cash, U.S. cash and/or U.S. Treasuries, in accordance with the 
collateral thresholds set forth in Schedule 401 of the ICC Rules. The 
proposed revisions to the ICC Rules and ICC Treasury Policy are 
described in detail as follows.
ICC Rules
    ICC proposes updates to Schedule 401 of the ICC Rules. 
Specifically, ICC proposes removing references to G7 cash,\3\ and 
defining `All Eligible Collateral' for both Non-Client Initial Margin 
and Guaranty Fund Liquidity Requirements and Client-Related Initial 
Margin Liquidity Requirements to be U.S. cash, Euro cash, and/or U.S. 
Treasuries. Under the proposed changes, U.S. cash, Euro cash, and/or 
U.S. Treasuries will be eligible for meeting the final 35% of Initial 
Margin and Guaranty Fund requirements for all Non-Client Initial Margin 
and Guaranty Fund Liquidity Requirements and Client-Related USD 
denominated Initial Margin Requirements; and U.S. cash, Euro cash, and/
or U.S. Treasuries will be eligible for meeting a maximum of 100% of 
Initial Margin requirements for Client-Related Euro Denominated Product 
Requirements.
---------------------------------------------------------------------------

    \3\ G7 cash includes U.S. cash, Euro cash, JPY, GBP, and CAD.
---------------------------------------------------------------------------

ICC Treasury Policy
    ICC also proposes updates to the ICC Treasury Policy to remove 
references to CAD, GBP, and JPY as eligible collateral. ICC proposes 
removing references to CAD, GBP, and JPY in the `Collateral Liquidation 
Assumptions' tables (for both Euro and U.S. Dollar denominated 
requirements). Under the proposed changes, the tables will set forth 
collateral liquidity assumptions for U.S. cash, Euro cash, and U.S. 
Treasuries only.
    ICC proposes updating the House Initial Margin and Guaranty Fund 
Liquidity Requirements (for Non-Client U.S. Dollar and Euro denominated 
requirements) chart to remove reference to G7 cash and to define `All 
Eligible Collateral' to be U.S. cash, Euro cash, and/or U.S. 
Treasuries. ICC proposes updating the list of acceptable forms of 
collateral for Initial Margin to specifically include U.S. Treasury 
Securities, U.S. cash, and Euro cash, and to remove the general 
reference to G7 currencies. ICC also proposes updating the list of 
acceptable forms of collateral for the Guaranty Fund to include U.S. 
Treasury Securities, U.S. cash, and Euro cash, and to remove the 
general reference to G7 currencies. ICC proposes updates to the 
`Eligible Client Collateral' section of the Treasury Policy to note 
that ICC's eligible collateral for client Initial Margin includes U.S. 
cash, Euro cash, and U.S. government securities in line with current 
eligible collateral for House exposures (i.e. U.S. Treasuries). ICC 
also proposes updates to the `Client-Related Initial Margin Liquidity 
Requirements' section of the Treasury Policy to reflect the proposed 
liquidity requirement changes, namely U.S. denominated product 
requirements of 65% U.S. cash and/or U.S. Treasuries, and 35% remainder 
eligible U.S. cash, U.S. Treasuries, and/or Euro cash; and Euro 
denominated product requirements of 100% U.S. cash, Euro cash, and/or 
U.S. Treasuries.
    Section 17A(b)(3)(F) of the Act \4\ requires, 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 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 
17A(b)(3)(F),\5\ because ICC believes that removing eligibility of JPY, 
GBP, and CAD to meet Initial Margin and Guaranty Fund requirements will 
promote the prompt and accurate clearance and settlement of securities 
transactions, derivatives agreements, contracts, and transactions, and 
contribute to the safeguarding of securities and funds associated with 
security-based swap transactions in ICC's custody or control, or for 
which ICC is responsible. The proposed update will promote the 
liquidity of ICC collateral. Such changes are consistent with the 
eligible collateral accepted by other market participants. Further, 
from a practical standpoint, the proposed updates will have minimal 
impact on ICC's financial resource composition, as such currencies have 
been rarely utilized by Clearing Participants to meet Initial Margin 
and Guaranty Fund requirements. ICC will continue to accept U.S. cash, 
Euro cash, and U.S. Treasuries as eligible collateral, in accordance 
with Schedule 401 of the ICC Rules. Such collateral will continue to be 
held in a manner whereby risk of loss or of delay in access to them is 
minimized, consistent with Section 17A(b)(3)(F) \6\ and Rule 17Ad-
22(d)(3).\7\
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78q-1(b)(3)(F).
    \5\ Id.
    \6\ Id.
    \7\ 17 CFR 240.17Ad-22(d)(3).

---------------------------------------------------------------------------

[[Page 31123]]

(B) Clearing Agency'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 changes to ICC's 
eligible collateral apply 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.

(C) Clearing Agency'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 up to 90 days (i) as the 
Commission may designate 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-ICC-2017-010 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-2017-010. 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 (http://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-2017-010 
and should be submitted on or before July 26, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-14013 Filed 7-3-17; 8:45 am]
 BILLING CODE 8011-01-P