Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the Clearance of Additional Credit Default Swap Contracts, 44477-44478 [2017-20204]

Download as PDF Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Notices 2(d)). This information is made available to the public. Information provided on Form CB is mandatory. Form CB takes approximately 0.5 hours per response to prepare and is filed by approximately 111 respondents annually. We estimate that 25% of the 0.5 hours per response (0.125 hours) is prepared by the respondent for an annual reporting burden of 14 hours (0.125 hours per response × 111 responses). 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 control number. The public may view the background documentation for this information collection at the following Web site, www.reginfo.gov . Comments should be directed to: (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503, or by sending an email to: Shagufta_ Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or send an email to: PRA_Mailbox@ sec.gov. Comments must be submitted to OMB within 30 days of this notice. Dated: September 15, 2017. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–20219 Filed 9–21–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–81646; File No. SR–ICC– 2017–009] Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the Clearance of Additional Credit Default Swap Contracts September 18, 2017. I. Introduction On June 13, 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 to revise the ICC Rulebook (the ‘‘Rules’’) in order to provide for the clearance of 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Sep<11>2014 18:11 Sep 21, 2017 Jkt 241001 Standard Asia Corporate Single Name CDS contracts (collectively, ‘‘STASC Contracts’’), Standard Asia Financial Corporate Single Name CDS contracts (collectively, ‘‘STASFC Contracts’’), and Standard Emerging Market Corporate Single Name CDS contracts (collectively, ‘‘STEMC Contracts’’). The proposed rule change was published for comment in the Federal Register on July 3, 2017.3 The Commission did not receive comments on the proposed rule change. On August 17, 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. II. Description of the Proposed Rule Change The purpose of this proposed rule change is to provide the basis for ICC to clear additional credit default swap contracts. Specifically, ICC has proposed amending Chapter 26 of the ICC Rules to add Subchapters 26O (providing for the clearance of STASC Contracts), 26P (providing for the clearance of STASFC Contracts), and 26Q (providing for the clearance of STEMC Contracts). ICC has represented that proposed Subchapters 26O and 26Q have terms similar to those Subchapters governing clearance of other corporate single name CDS contracts,5 and that proposed Subchapter 26P has terms similar to those Subchapters governing clearance of other financial corporate single name CDS contracts.6 Therefore, ICC states that the rules found in the new Subchapters 26O, 26P, and 26Q ‘‘largely mirror’’ the ICC Rules for currently cleared contracts, ‘‘with certain modifications that reflect differences in terms and market conventions.’’ 7 Each contract will be denominated in United States Dollars.8 ICC has also represented that clearing of the additional STASC, STASFC, and STEMC 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.9 3 Securities Exchange Act Release No. 34–81030 (June 27, 2017), 82 FR 30933 (July 3, 2017) (SR– ICC–2017–009) (‘‘Notice’’). 4 Securities Exchange Act Release No. 34–81414 (August 17, 2017), 82 FR 40050 (August 23, 2017) (SR–ICC–2017–009). 5 Notice, 82 FR at 30934. 6 Id. 7 Id. 8 Id. 9 Id. PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 44477 III. Discussion and Commission Findings Section 19(b)(2)(C) of the Act 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.10 Section 17A(b)(3)(F) of the Act 11 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 12 and the rules and regulations thereunder applicable to ICC. The Commission has reviewed the terms and conditions of these contracts and has determined that they are substantially similar to those that ICC currently clears, the key difference being the underlying reference obligations. Moreover, the Commission has reviewed the Notice and ICC’s Rules, policies and procedures, which provide that the STASC, STASFC and STEMC Contracts will be cleared pursuant to ICC’s existing clearing arrangements and related financial safeguards, protections and risk management procedures.13 In addition, the Commission has evaluated information submitted by ICC, including data on volume, open interest, and the number of ICC clearing participants (‘‘CPs’’) that currently trade in the STASC, STASFC and STEMC Contracts as well as certain model parameters for the additional STASC, STASFC and STEMC Contracts. Based on this review, the Commission finds that ICC’s rules, policies, and procedures are reasonably designed to price and measure the potential risk presented by these products; collect financial resources in proportion to such risk; and liquidate these products in the event of a CP default. Thus, the Commission finds that acceptance of the additional STASC, STASFC and STEMC Contracts, on the terms and conditions set out in ICC’s Rules, is consistent with the 10 15 U.S.C. 78s(b)(2)(C). U.S.C. 78q–1(b)(3)(F). 12 15 U.S.C. 78q–1. 13 Notice, 82 FR at 30934. 11 15 E:\FR\FM\22SEN1.SGM 22SEN1 44478 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Notices 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.14 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 15 and the rules and regulations thereunder. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,16 that the proposed rule change (File No. SR–ICC– 2017–009) be, and hereby is, approved.17 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–20204 Filed 9–21–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 32802A; 812–14777–01] Eagle Series Trust, et al. September 18, 2017. Securities and Exchange Commission (‘‘Commission’’). ACTION: Corrected notice to amend file number (see Eagle Series Trust, et al. IC–32802) (Aug. 31, 2017). AGENCY: Notice of an application under section 6(c) of the Investment Company Act of 1940 (‘‘Act’’) for an exemption from section 15(a) of the Act and rule 18f–2 under the Act, as well as from certain disclosure requirements in rule 20a–1 under the Act, Item 19(a)(3) of Form N– 1A, Items 22(c)(1)(ii), 22(c)(1)(iii), 22(c)(8) and 22(c)(9) of Schedule 14A under the Securities Exchange Act of 1934, and Sections 6–07(2)(a), (b), and (c) of Regulation S–X (‘‘Disclosure Requirements’’). The requested exemption would permit an investment adviser to hire and replace certain 14 15 U.S.C. 78q-1(b)(3)(F). U.S.C. 78q-1. 16 15 U.S.C. 78s(b)(2). 17 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). 18 17 CFR 200.30–3(a)(12). 15 15 VerDate Sep<11>2014 18:11 Sep 21, 2017 Jkt 241001 subadvisers without shareholder approval and grant relief from the Disclosure Requirements as they relate to fees paid to the subadvisers. The requested order would supersede a prior order.1 Applicants: Eagle Capital Appreciation Fund, Eagle Growth & Income Fund and Eagle Series Trust (each, a ‘‘Trust’’ and collectively, the ‘‘Trusts’’), each a Massachusetts business trust registered under the Act as an open-end management investment company with multiple series (each a ‘‘Fund’’), and Carillon Tower Advisers, Inc. (the ‘‘Initial Adviser’’), a Florida corporation registered as an investment adviser under the Investment Advisers Act of 1940 (collectively with the Trusts, the ‘‘Applicants’’). Filing Dates: The application was filed May 17, 2017, and amended on August 22, 2017. Hearing or Notification of Hearing: An order granting the application will be issued unless the Commission orders a hearing. Interested persons may request a hearing by writing to the Commission’s Secretary and serving Applicants with a copy of the request, personally or by mail. Hearing requests should be received by the Commission by 5:30 p.m. on October 13, 2017, and should be accompanied by proof of service on the 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 to be notified of a hearing may request notification by writing to the Commission’s Secretary. ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. Applicants: Susan L. Walzer, Carillon Tower Advisers, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716 and Kathy Kresch Ingber, K&L Gates LLP, 1601 K Street NW., Washington, DC 20006–1600. FOR FURTHER INFORMATION CONTACT: Laura L. Solomon, Senior Counsel, at (202) 551–6915, or David Marcinkus, Branch Chief, at (202) 551–6821 (Division of Investment Management, Chief Counsel’s Office). SUPPLEMENTARY INFORMATION: The following is a summary of the application. The complete application 1 Eagle Capital Appreciation Fund, et al., Investment Company Act Rel. Nos. 31239 (Sep. 3, 2014) (notice) and 31269 (Sep. 29, 2014) (order). PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 may be obtained via the Commission’s Web site by searching for the file number, or an Applicant using the Company name box, at http:// www.sec.gov/search/search.htm or by calling (202) 551–8090. Summary of the Application 1. The Adviser serves as the investment adviser to each Fund pursuant to an investment advisory agreement with the Fund (the ‘‘Investment Advisory Agreement’’).2 The Adviser provides the Funds with continuous and comprehensive investment management services subject to the supervision of, and policies established by, each Trust’s board of Trustees (‘‘Board’’). The Investment Advisory Agreement permits the Adviser, subject to the approval of the Board, to delegate to one or more subadvisers (each, a ‘‘Subadviser’’ and collectively, the ‘‘Subadvisers’’) the responsibility to provide the day-to-day portfolio investment management of each Fund, subject to the supervision and direction of the Adviser.3 The primary responsibility for managing the Subadvised Funds will remain vested in the Adviser. The Adviser will hire, evaluate, allocate assets to and oversee the Subadvisers, including determining whether a Subadviser should be terminated, at all times subject to the authority of the Board. 2. Applicants request an exemption to permit the Adviser, subject to Board approval, to hire certain Subadvisers pursuant to subadvisory agreements 2 Applicants request relief with respect to the named Applicants, as well as to any future Fund and any other existing or future registered open-end management investment company or series thereof that intends to rely on the requested order in the future and that: (i) Is advised by the Adviser; (ii) uses the multi- manager structure described in the application; and (iii) complies with the terms and conditions of the application (each, together with any Fund that currently uses the multi-manager structure described in the application, a ‘‘Subadvised Fund’’). The term ‘‘Adviser’’ means (i) the Initial Adviser, (ii) its successors, and (iii) any entity controlling, controlled by, or under common control with, the Initial Adviser or its successors. For purposes of the requested order, ‘‘successor’’ is limited to an entity resulting from a reorganization into another jurisdiction or a change in the type of business organization. 3 A ‘‘Subadviser’’ for a Fund is (1) an indirect or direct ‘‘wholly owned subsidiary’’ (as such term is defined in the Act) of the Adviser, or (2) a sister company of the Adviser that is an indirect or direct ‘‘wholly-owned subsidiary’’ (as such term is defined in the Act) of the same company that, indirectly or directly, wholly owns the Adviser (each of (1) and (2) a ‘‘Wholly-Owned Subadviser’’ and collectively, the ‘‘Wholly-Owned Subadvisers’’), or (3) not an ‘‘affiliated person’’ (as such term is defined in Section 2(a)(3) of the Act) of a Fund or the Adviser, except to the extent that an affiliation arises solely because the Subadviser serves as a subadviser to one or more Funds (each a ‘‘Non-Affiliated Subadviser’’ and collectively, the ‘‘Non-Affiliated Subadvisers’’). E:\FR\FM\22SEN1.SGM 22SEN1

Agencies

[Federal Register Volume 82, Number 183 (Friday, September 22, 2017)]
[Notices]
[Pages 44477-44478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20204]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81646; File No. SR-ICC-2017-009]


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

September 18, 2017.

I. Introduction

    On June 13, 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 to revise the ICC 
Rulebook (the ``Rules'') in order to provide for the clearance of 
Standard Asia Corporate Single Name CDS contracts (collectively, 
``STASC Contracts''), Standard Asia Financial Corporate Single Name CDS 
contracts (collectively, ``STASFC Contracts''), and Standard Emerging 
Market Corporate Single Name CDS contracts (collectively, ``STEMC 
Contracts''). The proposed rule change was published for comment in the 
Federal Register on July 3, 2017.\3\ The Commission did not receive 
comments on the proposed rule change. On August 17, 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. 34-81030 (June 27, 
2017), 82 FR 30933 (July 3, 2017) (SR-ICC-2017-009) (``Notice'').
    \4\ Securities Exchange Act Release No. 34-81414 (August 17, 
2017), 82 FR 40050 (August 23, 2017) (SR-ICC-2017-009).
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II. Description of the Proposed Rule Change

    The purpose of this proposed rule change is to provide the basis 
for ICC to clear additional credit default swap contracts. 
Specifically, ICC has proposed amending Chapter 26 of the ICC Rules to 
add Subchapters 26O (providing for the clearance of STASC Contracts), 
26P (providing for the clearance of STASFC Contracts), and 26Q 
(providing for the clearance of STEMC Contracts). ICC has represented 
that proposed Subchapters 26O and 26Q have terms similar to those 
Subchapters governing clearance of other corporate single name CDS 
contracts,\5\ and that proposed Subchapter 26P has terms similar to 
those Subchapters governing clearance of other financial corporate 
single name CDS contracts.\6\ Therefore, ICC states that the rules 
found in the new Subchapters 26O, 26P, and 26Q ``largely mirror'' the 
ICC Rules for currently cleared contracts, ``with certain modifications 
that reflect differences in terms and market conventions.'' \7\ Each 
contract will be denominated in United States Dollars.\8\ ICC has also 
represented that clearing of the additional STASC, STASFC, and STEMC 
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.\9\
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    \5\ Notice, 82 FR at 30934.
    \6\ Id.
    \7\ Id.
    \8\ Id.
    \9\ Id.
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III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act 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.\10\ Section 
17A(b)(3)(F) of the Act \11\ 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.
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    \10\ 15 U.S.C. 78s(b)(2)(C).
    \11\ 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 \12\ and the rules and 
regulations thereunder applicable to ICC. The Commission has reviewed 
the terms and conditions of these contracts and has determined that 
they are substantially similar to those that ICC currently clears, the 
key difference being the underlying reference obligations. Moreover, 
the Commission has reviewed the Notice and ICC's Rules, policies and 
procedures, which provide that the STASC, STASFC and STEMC Contracts 
will be cleared pursuant to ICC's existing clearing arrangements and 
related financial safeguards, protections and risk management 
procedures.\13\ In addition, the Commission has evaluated information 
submitted by ICC, including data on volume, open interest, and the 
number of ICC clearing participants (``CPs'') that currently trade in 
the STASC, STASFC and STEMC Contracts as well as certain model 
parameters for the additional STASC, STASFC and STEMC Contracts. Based 
on this review, the Commission finds that ICC's rules, policies, and 
procedures are reasonably designed to price and measure the potential 
risk presented by these products; collect financial resources in 
proportion to such risk; and liquidate these products in the event of a 
CP default. Thus, the Commission finds that acceptance of the 
additional STASC, STASFC and STEMC Contracts, on the terms and 
conditions set out in ICC's Rules, is consistent with the

[[Page 44478]]

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.\14\
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    \12\ 15 U.S.C. 78q-1.
    \13\ Notice, 82 FR at 30934.
    \14\ 15 U.S.C. 78q-1(b)(3)(F).
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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 \15\ and the 
rules and regulations thereunder.
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    \15\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\16\ that the proposed rule change (File No. SR-ICC-2017-009) be, 
and hereby is, approved.\17\
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    \16\ 15 U.S.C. 78s(b)(2).
    \17\ 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.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-20204 Filed 9-21-17; 8:45 am]
 BILLING CODE 8011-01-P