Sunshine Act Meetings, 51662-51663 [2017-24260]
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51662
Federal Register / Vol. 82, No. 214 / Tuesday, November 7, 2017 / Notices
19(b)(3)(A) 6 of the Act and
subparagraph (f)(2) of Rule 19b–4 7
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 8 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
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
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSEAMER–2017–27, and
should be submitted on or before
November 28, 2017.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Eduardo A. Aleman,
Assistant Secretary.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is designed to
ensure that the fees charged by the
Exchange accurately reflect the services
provided and benefits realized by listed
companies. The market for listing
services is extremely competitive. Each
listing exchange has a different fee
schedule that applies to issuers seeking
to list securities on its exchange. Issuers
have the option to list their securities on
these alternative venues based on the
fees charged and the value provided by
each listing. Because issuers have a
choice to list their securities on a
different national securities exchange,
the Exchange does not believe that the
proposed fee changes impose a burden
on competition.
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mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest and is not designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that it is
reasonable to increase the annual listing
fees for common stocks and warrants
because these fees have not been
increased since 2015. In that regard, the
Exchange notes that, since the fees were
last amended, the Exchange has
improved and increased the services it
provides to listed companies. These
improvements include the continued
development and enhancement of an
interactive web-based platform designed
to improve communication between the
Exchange and listed companies, the
availability to listed companies of the
Exchange’s new state-of-the-art
conference facilities at 11 Wall Street,
and continued development and content
in an investor relations tool available to
all listed companies which provides
companies with information enabling
them to better understand the trading
and ownership of their securities.
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEAMER–2017–27 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
VerDate Sep<11>2014
17:29 Nov 06, 2017
Jkt 244001
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEAMER–2017–27. 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 (https://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
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
8 15 U.S.C. 78s(b)(2)(B).
[FR Doc. 2017–24132 Filed 11–6–17; 8:45 am]
BILLING CODE 8011–01–P
Sunshine Act Meetings
2:00 p.m. on Thursday,
November 9, 2017.
PLACE: Closed Commission Hearing
Room 10800.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (a)(5), (a)(7),
(a)(9)(ii) and (a)(10), permit
consideration of the scheduled matters
at the closed meeting.
Commissioner Stein, as duty officer,
voted to consider the items listed for the
closed meeting in closed session.
The subject matters of the closed
meeting will be:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings; and
Other matters relating to enforcement
proceedings.
TIME AND DATE:
7 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 82, No. 214 / Tuesday, November 7, 2017 / Notices
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed; please contact
Brent J. Fields from the Office of the
Secretary at (202) 551–5400.
Dated: November 2, 2017.
Brent J. Fields,
Secretary.
[FR Doc. 2017–24260 Filed 11–3–17; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81994; File No. SR–ICEEU–
2017–013]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
of Proposed Rule Change, SecurityBased Swap Submission or Advance
Notice Relating to the ICE Clear
Europe Procyclicality Framework
November 1, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
23, 2017, ICE Clear Europe Limited
(‘‘ICE Clear Europe’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
changes described in Items I, II, and III
below, which Items have been prepared
primarily by ICE Clear Europe. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
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The principal purpose of the changes
is to adopt a new policy framework for
addressing the procyclicality of its risk
management policies by establishing
such a framework that addresses the risk
appetite, model design, monitoring and
assessment and management of
procyclicality in the risk models used
by ICE Clear Europe to manage default
risk.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, ICE
Clear Europe included statements
concerning the purpose of and basis for
the proposed rule change and discussed
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
17:29 Nov 06, 2017
Jkt 244001
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. ICE
Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C)
below, of the most significant aspects of
such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Purpose
The purpose of the Procyclicality
Framework is to establish an overall
framework for the risk appetite, model
design, monitoring and assessment and
management of procyclicality in the risk
models used by ICE Clear Europe to
manage default risk. The European
Market Infrastructure Regulation 3
(‘‘EMIR’’) and related implementing
standards require that a central
counterparty (‘‘CCP’’) ensure that its
margin framework provides, among
other matters, stable and prudent
margin requirements that limit
procyclicality to the extent that the
soundness and financial security of the
central counterparty is not negatively
affected.4 Those standards also require
that central counterparties implement at
least one of several specified options for
mitigating procyclicality with respect to
margin requirements.5
Although ICE Clear Europe’s current
margin policies incorporate the antiprocyclicality (‘‘APC’’) measures
required by EMIR (and ICE Clear Europe
does not propose to change such
measures at this time), it is proposing to
adopt the Procyclicality Framework in
order to provide a more defined
framework for considering the impact of
procyclicality on margining,
membership, collateral haircuts, stress
testing and concentration risk policies.
The framework is designed to set out (1)
the aspects of ICE Clear Europe risk
policies relevant to procyclicality
considerations, (2) how the clearing
house will assess procyclicality (both as
a qualitative and a quantitative matter)
and (3) how the clearing house will
3 Regulation (EU) No 648/2012 of the European
Parliament and of the Council of 4 July 2012 on
OTC derivatives, central counterparties and trade
repositories, as well as various implementing
regulations and technical standards.
4 Article 28 of Commission Delegated Regulation
(EU) No 153/2013 of 19 December 2012
supplementing Regulation (EU) No 648/2012 of the
European Parliament and of the Council with regard
to regulatory technical standards on requirements
for central counterparties.
5 The CPMI–IOSCO Principles for Financial
Market Infrastructures (‘‘PFMIs’’) similarly provide
that a clearing house should limit procyclicality for
margin requirements and haircuts. See Principles 5
(Collateral) and 6 (Margin).
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51663
factor considerations of procyclicality
into its response to emerging risks.
Although ‘‘procyclicality’’ is not
expressly defined in EMIR, ICE Clear
Europe considers procyclicality for
purposes of the proposed framework to
be the extent to which changes in
market conditions can have an effect on
a clearing member’s ability to manage
its liquidity to meet ICE Clear Europe’s
changing margin requirements. For
example, a typical initial margin model
would require increased margin in
stressed margin conditions, and such
increases may potentially occur rapidly
and/or over-react to the change in
conditions. Such margin increases, in
turn, may stress a clearing member’s
ability to obtain liquidity to meet the
increased requirements.
The framework identifies sources of
procyclicality, in particular in margin
models, stress testing, and collateral
haircut policies, and references existing
mitigation strategies and stress testing
arrangements used by the clearing
house. Stress testing scenarios that are
based on models similar to margin
models but targeting a higher
confidence quantile may also be
procyclical due to changing market
conditions, which may lead to increased
stress shock results and therefore in
default fund requirements. The
framework also addresses how ICE Clear
Europe intends to address procyclicality
on an ongoing basis. Under the
framework, ICE Clear Europe will assess
procyclicality by monitoring the 95th
percentile expected shortfall of the 5day percentage change in initial margin
(or other relevant risk mitigant) over a
rolling 250-day window. ICE Clear
Europe established this period, in
consultation with Clearing Members, as
an appropriate period to reflect shortterm spikes in margin. ICE Clear Europe
will also monitor the largest percentage
changes to facilitate observation of both
the maximum and a tail estimate to
remove extreme outliers. A red-ambergreen (‘‘R–A–G’’) escalation framework
will be used with respect to
implementing APC measures based on
certain defined thresholds for expected
95th percentile expected shortfall
metric, which are detailed in an
appendix to the framework. The
escalation framework specifies
appropriate responses where the
expected shortfall level is at an amber
or green level. ICE Clear Europe will
assess procyclicality both on a regular
basis in monitoring model performance
and making margin rate adjustments as
part of risk model design.
The framework requires that the
model design process take into
consideration the procyclicality
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Agencies
[Federal Register Volume 82, Number 214 (Tuesday, November 7, 2017)]
[Notices]
[Pages 51662-51663]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24260]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meetings
TIME AND DATE: 2:00 p.m. on Thursday, November 9, 2017.
PLACE: Closed Commission Hearing Room 10800.
STATUS: This meeting will be closed to the public.
MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners,
the Secretary to the Commission, and recording secretaries will attend
the closed meeting. Certain staff members who have an interest in the
matters also may be present.
The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(7), (a)(9)(ii) and (a)(10), permit
consideration of the scheduled matters at the closed meeting.
Commissioner Stein, as duty officer, voted to consider the items
listed for the closed meeting in closed session.
The subject matters of the closed meeting will be:
Institution and settlement of injunctive actions;
Institution and settlement of administrative proceedings; and
Other matters relating to enforcement proceedings.
[[Page 51663]]
At times, changes in Commission priorities require alterations in
the scheduling of meeting items.
CONTACT PERSON FOR MORE INFORMATION: For further information and to
ascertain what, if any, matters have been added, deleted or postponed;
please contact Brent J. Fields from the Office of the Secretary at
(202) 551-5400.
Dated: November 2, 2017.
Brent J. Fields,
Secretary.
[FR Doc. 2017-24260 Filed 11-3-17; 11:15 am]
BILLING CODE 8011-01-P