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]
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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.
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per response to prepare and is filed by
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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
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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
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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
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18:11 Sep 21, 2017
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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 https://
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’’).
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]]>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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\5\ Notice, 82 FR at 30934.
\6\ Id.
\7\ Id.
\8\ Id.
\9\ Id.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2)(C).
\11\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78q-1.
\13\ Notice, 82 FR at 30934.
\14\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-20204 Filed 9-21-17; 8:45 am]
BILLING CODE 8011-01-P
