Self-Regulatory Organizations; LCH SA; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Margin Framework and Default Fund Methodology for Options on Index Credit Default Swaps, 55139-55141 [2017-25040]
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Federal Register / Vol. 82, No. 222 / Monday, November 20, 2017 / Notices
F. Written Understanding or Agreements
Relating to Interpretation of, or
Participation in, Plan
Not applicable.
E. Standards and Methods Ensuring
Promptness, Accuracy and
Completeness of Transaction Reports
Not applicable
G. Approval by Sponsors in Accordance
With Plan
See Item I.C. above.
F. Rules and Procedures Addressed to
Fraudulent or Manipulative
Dissemination
Not applicable.
H. Description of Operation of Facility
Contemplated by the Proposed
Amendments
Not applicable.
I. Terms and Conditions of Access
Not applicable.
J. Method of Determination and
Imposition, and Amount of, Fees and
Charges
The Participants believe that the
amendment proposed herein is fair and
reasonable since it corrects an
inadvertent omission in order to ensure
the continued implementation of the
derived data policy that has been in
place for at least ten years.
The longstanding derived data policy
is reasonable in order to protect the
Plan’s proprietary rights over
consolidated quotation and last sale
information. As previously stated,
derived data that contains price data
and is based upon a single security
symbol is fee liable at the underlying
product rates. Derived data that contains
volume data but no price data and
derived data that is based upon multiple
security symbols is not currently fee
liable. Such an approach is logical given
the similarity between derived data that
contains price data and is based upon a
single security symbol to the
consolidated quotation and last sale
information disseminated by the Plans.
K. Method and Frequency of Processor
Evaluation
Not applicable.
L. Dispute Resolution
Not applicable.
II. Rule 601(a)
A. Equity Securities for Which
Transaction Reports Shall Be Required
by the Plan
Not applicable.
nshattuck on DSK9F9SC42PROD with NOTICES
B. Reporting Requirements
Not applicable.
C. Manner of Collecting, Processing,
Sequencing, Making Available and
Disseminating Last Sale Information
Not applicable.
D. Manner of Consolidation
Not applicable.
VerDate Sep<11>2014
15:15 Nov 17, 2017
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G. Terms of Access to Transaction
Reports
Not applicable.
55139
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 S7–24–89 and should be
submitted on or before December 11,
2017.
By the Commission.
Brent J. Fields,
Secretary.
H. Identification of Marketplace of
Execution
Not applicable.
[FR Doc. 2017–25028 Filed 11–17–17; 8:45 am]
III. Solicitation of Comments
The Commission seeks comments on
the Amendment. Interested persons are
invited to submit written data, views,
and arguments concerning the
foregoing, including whether the
proposed Amendment is consistent with
the Act. Comments may be submitted by
any of the following methods:
SECURITIES AND EXCHANGE
COMMISSION
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 S7–
24–89 on the subject line.
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 File No. S7–24–89. 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
Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all
written statements with respect to the
proposed Amendment that are filed
with the Commission, and all written
communications relating to the
proposed Amendment 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 on official business
days between the hours of 10:00 a.m.
and 3:00 p.m. Copies of the Amendment
also will be available for Web site
viewing and printing at the principal
office of the Plan. All comments
received will be posted without change.
PO 00000
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BILLING CODE 8011–01–P
[Release No. 34–82076; File No. SR–LCH
SA–2017–008]
Self-Regulatory Organizations; LCH
SA; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to Margin Framework
and Default Fund Methodology for
Options on Index Credit Default Swaps
November 14, 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 November
6, 2017, Banque Centrale de
Compensation, which conducts
business under the name LCH SA (‘‘LCH
SA’’), filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I, II, and III below, which Items
have been prepared primarily by LCH
SA. LCH SA filed the proposed rule
changes pursuant to Section
19(b)(3)(A) 3 of the Act and Rule 19b–
4(f)(2) 4 thereunder, so that the proposal
was effective upon filing with the
Commission. 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
LCH SA is filing the new fee grid in
connection with the proposed extension
of the CDSClear service to the clearing
of options on index credit default swaps
(‘‘CDS Options’’). The text of the
proposed rule change has been annexed
as Exhibit 5.
Two separate proposed rule changes
have been submitted concurrently (SR–
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
2 17
E:\FR\FM\20NON1.SGM
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55140
Federal Register / Vol. 82, No. 222 / Monday, November 20, 2017 / Notices
LCH SA–2017–006 and 007) with
respect to amendments to (i) LCH SA’s
rule book and other relevant procedures
and to (ii) LCH SA CDSClear Margin
Framework and Default Fund
Methodology in order to incorporate
terms and to make conforming and
clarifying changes to allow CDS Options
to be cleared by LCH SA. The launch of
clearing CDS Options will be contingent
on LCH SA’s receipt of all necessary
regulatory approvals, including the
approval by the Commission of the
proposed rule changes described under
SR–LCH–SA–2017–006 and 007.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
LCH SA 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. LCH SA 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
nshattuck on DSK9F9SC42PROD with NOTICES
1. Purpose
The purpose of the proposed rule
change is to establish the applicable fee
grid in connection with the proposed
extension of the CDSClear service to the
clearing of CDS Options.
The proposed rule change introduces
a fixed onboarding fee payable by every
General and Select member that will
join the new clearing service. The
onboarding fee will be waived for any
member whose onboarding for such
clearing service is duly confirmed by
LCH SA on or before 31st March 2018.
In addition to the fixed onboarding
fee, the clearing fees are due by each
General Member, Select Member or
Client in accordance with the amount,
currency and volume specified in the
fee grid attached in Exhibit 5. Similar to
the current Index & Single Names fee
grid for General Membership under the
Introductory tariff, a floor and a cap on
clearing fees have been implemented for
General Members opting for the CDS
Options clearing service. Select
Members opting for the CDS Options
clearing service are only subject to
capped fees as Select Membership is
designed primarily for price takers with
a smaller portfolio and a fixed cost (to
which a floor amounts to) would deter
them from clearing CDS Options.
VerDate Sep<11>2014
15:15 Nov 17, 2017
Jkt 244001
All members and clients will benefit
from a clearing fee holiday until 31st
December 2017.
2. Statutory Basis
LCH SA believes that the proposed
rule change in connection with the
clearing of CDS Options is consistent
with the requirements of Section 17A of
the Act and the regulations thereunder,
including the standards under Rule
17Ad–22.5
Section 17A(b)(3)(D) of the Act
requires that the rules of a clearing
agency provide for the equitable
allocation of reasonable dues, fees, and
other charges.6 The proposed fee grid
for the new non-mandatory Credit Index
Options clearing service has been
discussed with CDSClear members and
designed with the goal of enabling
members to register to this service as
well as to incentivize clearing of such
non-mandated for clearing products
while taking into consideration current
market trading conditions for options.
As noted above, the proposed fee grid
will apply equally to all General
members, Select Members and clients
that will voluntary participate in this
new CDS Clearing Service and LCH SA
believes that it is reasonable and
appropriate.
As Select Members have fewer
obligations than General Members,
variable clearing fees for CDS Options
are higher for Select Members than for
General Members (similarly to the
current Index & Single Names variable
fee grid). Clients have no obligation
towards the CCP, and hence variable
clearing fees for CDS Options are set
higher for them than for Members
(similarly to the current Index & Single
Names variable fee grid). As for Select
Members, a fixed cost (floor) being
applied to clients could deter them from
choosing to clear CDS Options.
Finally, the purpose of the cap is to
incentivize participants to provide
liquidity into the CDS Options clearing
service. Unlike General Members, as
clients are not meant to provide such
liquidity, LCH SA does not offer capped
clearing fees for clients.
LCH SA believes that the proposed
rule change is consistent with the
requirements of Section 17A of the Act 7
and regulations thereunder applicable to
it, because it provides for the equitable
allocation of reasonable fees, dues, and
other charges among clearing members
and market participants by ensuring that
General and Select Members and clients
CFR 240.17Ad–22.
U.S.C. 78q–1(b)(3)(D).
7 15 U.S.C. 78q–1.
pay reasonable fees and dues for the
services that LCH SA provides.
B. Clearing Agency’s Statement on
Burden on Competition
Section 17A(b)(3)(I) of the Act
requires that the rules of a clearing
agency not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act.8 LCH SA does not
believe that the proposed rule change
would impose any burden on
competition that are not necessary or
appropriate in furtherance of the
purposes of the Act.
Credit Index Options contracts will be
available to all LCH SA CDSClear
participants for clearing. The clearing of
CDS Options contracts by LCH SA
CDSClear does not preclude the offering
of these financial instruments for
clearing by other market participants.
The proposed rule change does not
adversely affect the ability of such
Clearing Members or other market
participants generally to engage in
cleared transactions or to access clearing
services. Therefore, LCH SA does not
believe that the proposed rule change
would impose a burden on competition
not necessary or appropriate 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. LCH SA will
notify the Commission of any written
comments received by LCH SA.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Subject to any regulatory review or
approval process duly completed, the
foregoing proposed rule change has
become effective upon filing pursuant to
Section 19(b)(3)(A) 9 of the Act and Rule
19b–4(f)(2) 10 thereunder because it
establishes a fee or other charge
imposed by LCH SA on its Clearing
Members. At any time within 60 days of
the filing of the proposed rule change,
the Commission summarily may
temporarily suspend such proposed 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
5 17
8 15
6 15
9 15
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
U.S.C. 78q–1(b)(3)(I).
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
E:\FR\FM\20NON1.SGM
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Federal Register / Vol. 82, No. 222 / Monday, November 20, 2017 / Notices
in furtherance of the purposes of the
Act.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
LCH SA–2017–008 on the subject line.
nshattuck on DSK9F9SC42PROD with NOTICES
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–LCH SA–2017–008. 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
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 the
filing also will be available for
inspection and copying at the principal
office of LCH SA and on LCH SA’s Web
site at https://www.lch.com/assetclasses/cdsclear.
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–LCH SA–2017–008
and should be submitted on or before
December 11, 2017.
VerDate Sep<11>2014
15:15 Nov 17, 2017
Jkt 244001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–25040 Filed 11–17–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82077; File No. SR–CHX–
2016–20]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing of Amendment No. 2 to
Proposed Rule Change in Connection
With the Proposed Transaction
Involving CHX Holdings, Inc. and North
America Casin Holdings, Inc.
November 14, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on November 6, 2017, the Chicago Stock
Exchange, Inc. (‘‘CHX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
Amendment No. 2 to the proposed rule
change as described in Item I below,
which Item has been prepared by the
Exchange and is reproduced below
verbatim.
The proposed rule change was
designed to effect an acquisition of CHX
Holdings, Inc. by North America Casin
Holdings, Inc., which would be owned
by a consortium of investors (‘‘upstream
investors’’). On August 9, 2017, the
Division of Trading and Markets, for the
Commission pursuant to delegated
authority,3 approved the proposed rule
change, as modified by Amendment No.
1.4 Pursuant to Commission Rule of
Practice 431,5 the Commission is
reviewing the delegated action, and the
approval order is stayed.6 On August 18,
2017, the Commission issued a
scheduling order, pursuant to
Commission Rule of Practice 431,
providing until September 17, 2017 for
any party or other person to file any
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 200.30 3(a)(12).
4 See Exchange Act Release No. 81366, 82 FR
38734 (August 15, 2017).
5 17 CFR 201.431.
6 See Letter from Secretary of the Commission to
Albert (A.J.) Kim, VP and Associate General
Counsel, Chicago Stock Exchange, Inc., dated
August 9, 2017 (providing notice of Commission
review of delegated action and stay of order),
available at https://www.sec.gov/rules/sro/chx/
2017/34-81366-letter-from-secretary.pdf.
1 15
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
55141
additional statements.7 On October 2,
2017, during the Commission’s review
of the delegated action, CHX informed
the Commission that three of the
upstream investors were withdrawing
from the investor group. CHX
subsequently filed Amendment No. 2 to
the proposed rule change to update its
proposal to reflect this change in the
investor group. Because of this change
and a number of other changes to the
proposed transaction, as described
below, including, among other things, a
change to the North America Casin
Holdings, Inc. Certificate of
Incorporation that provides for an 85%
super-majority vote requirement for
certain corporate actions, revised put
agreements for Raptor Holdco LLC and
Saliba Ventures Holdings, LLC, and a
new put agreement for Penserra
Securities, LLC, the Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Amendment No. 2 to SR–CHX–2016–
20
The Chicago Stock Exchange, Inc. is
filing this Partial Amendment no. 2 to
SR–CHX–2016–20, a proposed rule
change related to a proposed transaction
(‘‘Proposed Transaction’’) involving,
among others, the Exchange’s direct
parent company, CHX Holdings, Inc.
(‘‘CHX Holdings’’), and North America
Casin Holdings, Inc. (‘‘NA Casin
Holdings’’), which was originally filed
on December 2, 2016 (‘‘Initial Filing’’)
and modified by Partial Amendment
No. 1 on August 7, 2017. The proposed
rule change was published for comment
in the Federal Register on December 12,
2016.8 The U.S. Securities and
Exchange Commission then received
seven comment letters,9 including two
response letters from the Exchange.10
On January 12, 2017, the Commission
instituted proceedings to determine
whether to approve or disapprove the
proposed rule change,11 pursuant to
Section 19(b)(2) of the Securities
Exchange Act of 1934 (‘‘Exchange
7 See Exchange Act Release No. 81435, 82 FR
40187 (August 24, 2017).
8 See Exchange Act Release No. 79474 (December
6, 2016), 81 FR 89543 (December 12, 2016) (SR–
CHX–2016–20) (‘‘Notice’’).
9 All comment letters on the Initial Filing may be
found at https://www.sec.gov/comments/sr-chx2016-20/chx201620.shtml.
10 See Letter to Brent J. Fields, Secretary,
Commission, from John K. Kerin, President and
CEO, CHX (January 5, 2017) (‘‘First CHX Letter’’);
see also Letter to Brent J. Fields, Secretary,
Commission, from Albert J. Kim, Vice President and
Associate General Counsel, CHX (January 6, 2017)
(‘‘Second CHX Letter’’).
11 See Exchange Act Release No. 79781 (January
12, 2017), 82 FR 6669 (January 19, 2017).
E:\FR\FM\20NON1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 222 (Monday, November 20, 2017)]
[Notices]
[Pages 55139-55141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25040]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82076; File No. SR-LCH SA-2017-008]
Self-Regulatory Organizations; LCH SA; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change Relating to Margin
Framework and Default Fund Methodology for Options on Index Credit
Default Swaps
November 14, 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 November 6, 2017, Banque Centrale de Compensation, which conducts
business under the name LCH SA (``LCH SA''), filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change
described in Items I, II, and III below, which Items have been prepared
primarily by LCH SA. LCH SA filed the proposed rule changes pursuant to
Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(2) \4\ thereunder,
so that the proposal was effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
LCH SA is filing the new fee grid in connection with the proposed
extension of the CDSClear service to the clearing of options on index
credit default swaps (``CDS Options''). The text of the proposed rule
change has been annexed as Exhibit 5.
Two separate proposed rule changes have been submitted concurrently
(SR-
[[Page 55140]]
LCH SA-2017-006 and 007) with respect to amendments to (i) LCH SA's
rule book and other relevant procedures and to (ii) LCH SA CDSClear
Margin Framework and Default Fund Methodology in order to incorporate
terms and to make conforming and clarifying changes to allow CDS
Options to be cleared by LCH SA. The launch of clearing CDS Options
will be contingent on LCH SA's receipt of all necessary regulatory
approvals, including the approval by the Commission of the proposed
rule changes described under SR-LCH-SA-2017-006 and 007.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, LCH SA 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. LCH SA 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
1. Purpose
The purpose of the proposed rule change is to establish the
applicable fee grid in connection with the proposed extension of the
CDSClear service to the clearing of CDS Options.
The proposed rule change introduces a fixed onboarding fee payable
by every General and Select member that will join the new clearing
service. The onboarding fee will be waived for any member whose
onboarding for such clearing service is duly confirmed by LCH SA on or
before 31st March 2018.
In addition to the fixed onboarding fee, the clearing fees are due
by each General Member, Select Member or Client in accordance with the
amount, currency and volume specified in the fee grid attached in
Exhibit 5. Similar to the current Index & Single Names fee grid for
General Membership under the Introductory tariff, a floor and a cap on
clearing fees have been implemented for General Members opting for the
CDS Options clearing service. Select Members opting for the CDS Options
clearing service are only subject to capped fees as Select Membership
is designed primarily for price takers with a smaller portfolio and a
fixed cost (to which a floor amounts to) would deter them from clearing
CDS Options.
All members and clients will benefit from a clearing fee holiday
until 31st December 2017.
2. Statutory Basis
LCH SA believes that the proposed rule change in connection with
the clearing of CDS Options is consistent with the requirements of
Section 17A of the Act and the regulations thereunder, including the
standards under Rule 17Ad-22.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 240.17Ad-22.
---------------------------------------------------------------------------
Section 17A(b)(3)(D) of the Act requires that the rules of a
clearing agency provide for the equitable allocation of reasonable
dues, fees, and other charges.\6\ The proposed fee grid for the new
non-mandatory Credit Index Options clearing service has been discussed
with CDSClear members and designed with the goal of enabling members to
register to this service as well as to incentivize clearing of such
non-mandated for clearing products while taking into consideration
current market trading conditions for options.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
As noted above, the proposed fee grid will apply equally to all
General members, Select Members and clients that will voluntary
participate in this new CDS Clearing Service and LCH SA believes that
it is reasonable and appropriate.
As Select Members have fewer obligations than General Members,
variable clearing fees for CDS Options are higher for Select Members
than for General Members (similarly to the current Index & Single Names
variable fee grid). Clients have no obligation towards the CCP, and
hence variable clearing fees for CDS Options are set higher for them
than for Members (similarly to the current Index & Single Names
variable fee grid). As for Select Members, a fixed cost (floor) being
applied to clients could deter them from choosing to clear CDS Options.
Finally, the purpose of the cap is to incentivize participants to
provide liquidity into the CDS Options clearing service. Unlike General
Members, as clients are not meant to provide such liquidity, LCH SA
does not offer capped clearing fees for clients.
LCH SA believes that the proposed rule change is consistent with
the requirements of Section 17A of the Act \7\ and regulations
thereunder applicable to it, because it provides for the equitable
allocation of reasonable fees, dues, and other charges among clearing
members and market participants by ensuring that General and Select
Members and clients pay reasonable fees and dues for the services that
LCH SA provides.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
B. Clearing Agency's Statement on Burden on Competition
Section 17A(b)(3)(I) of the Act requires that the rules of a
clearing agency not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.\8\ LCH SA does
not believe that the proposed rule change would impose any burden on
competition that are not necessary or appropriate in furtherance of the
purposes of the Act.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------
Credit Index Options contracts will be available to all LCH SA
CDSClear participants for clearing. The clearing of CDS Options
contracts by LCH SA CDSClear does not preclude the offering of these
financial instruments for clearing by other market participants.
The proposed rule change does not adversely affect the ability of
such Clearing Members or other market participants generally to engage
in cleared transactions or to access clearing services. Therefore, LCH
SA does not believe that the proposed rule change would impose a burden
on competition not necessary or appropriate 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. LCH SA will notify the Commission of any written
comments received by LCH SA.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Subject to any regulatory review or approval process duly
completed, the foregoing proposed rule change has become effective upon
filing pursuant to Section 19(b)(3)(A) \9\ of the Act and Rule 19b-
4(f)(2) \10\ thereunder because it establishes a fee or other charge
imposed by LCH SA on its Clearing Members. At any time within 60 days
of the filing of the proposed rule change, the Commission summarily may
temporarily suspend such proposed 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
[[Page 55141]]
in furtherance of the purposes of the Act.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-LCH SA-2017-008 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-LCH SA-2017-008.
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 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 the filing also will be
available for inspection and copying at the principal office of LCH SA
and on LCH SA's Web site at https://www.lch.com/asset-classes/cdsclear.
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-LCH SA-2017-008 and should
be submitted on or before December 11, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-25040 Filed 11-17-17; 8:45 am]
BILLING CODE 8011-01-P
