Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Relating to Formalization of the ICC Model Validation Framework, 27360-27362 [2018-12550]
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Federal Register / Vol. 83, No. 113 / Tuesday, June 12, 2018 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
investors and the public interest,
provided that the self-regulatory
organization has given the Commission
written notice of its intent to file the
proposed rule change at least five
business days prior to the date of filing
of the proposed rule change or such
shorter time as designated by the
Commission,10 the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 11 and
Rule 19b–4(f)(6) 12 thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
the date of its filing. Pursuant to Rule
19b–4(f)(6)(iii),14 however, the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. ICC has requested that the
Commission waive the five-day prefiling requirement and the 30-day
operative delay so that ICC may
implement the proposed rule change by
the effective date of the GDPR (May 25,
2018). The Commission notes that the
proposed rule change is limited to
revising Rule 407 to facilitate
compliance with the requirements of the
GDPR, including committing ICC to
keeping Personal Data confidential and
clarifying that ICC’s policies on use of
personal data will now primarily be
stated in a privacy notice. The proposed
rule change does not (i) significantly
affect the protection of investors or the
public interest; (ii) impose any
significant burden on competition; or
(iii) affect the safeguarding of funds or
securities in the custody or control of
ICC or for which it is responsible.
Waiver of the five-day pre-filing
requirement and the 30-day operative
delay would allow ICC to implement the
proposed rule change by the effective
date of the GDPR and therefore comply
with EU law. Therefore, the
Commission believes that waiving the
five-day pre-filing requirement and the
30-day operative delay is consistent
with the protection of investors and the
public interest and designates the
proposed rule change as operative upon
filing.15
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
10 ICC
has satisfied this requirement.
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 For purposes only of waiving the five-day prefiling requirement and the 30-day operative delay,
the Commission has considered the proposed rule
change’s impact on efficiency, competition, and
capital formation. See 15 U.S.C. 78c(f).
11 15
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it appears to the Commission that such
action is: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICC–2018–005 on the subject line.
Paper Comments
Send paper comments in triplicate to
Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ICC–2018–005. 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 website (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 website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Credit and on ICE
Clear Credit’s website at https://
www.theice.com/clear-credit/regulation.
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.
PO 00000
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You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–ICC–2018–005 and
should be submitted on or before July 3,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–12551 Filed 6–11–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83386; File No. SR–ICC–
2018–004]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing of
Proposed Rule Change Relating to
Formalization of the ICC Model
Validation Framework
June 6, 2018.
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 May 23,
2018, ICE Clear Credit LLC (‘‘ICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been prepared by ICC. 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
The principal purpose of the
proposed rule change is to formalize the
ICC Model Validation Framework. This
change does not require any revisions to
the ICC Clearing Rules.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, ICC
included statements concerning the
purpose of and basis for the proposed
rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. ICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 83, No. 113 / Tuesday, June 12, 2018 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Summary of Proposed Changes
ICC proposes to formalize the ICC
Model Validation Framework, which
sets forth ICC’s model validation
procedures. ICC has developed a
proprietary risk management system
that models the risk of credit default
swap based portfolios and determines
appropriate Initial Margin and Guaranty
Fund requirements. The risk
management system is composed of risk
modeling components (‘‘Model
Components’’) which employ a
combination of statistical analysis of
credit spread time series and stress test
simulation scenarios to address different
risk drivers. The risk drivers addressed
by the Model Components constitute the
foundation of total Initial Margin and
Guaranty Fund requirements for cleared
portfolios. The ICC Model Validation
Framework provides assurances as to
the appropriateness of its risk
requirements. ICC’s Risk Oversight
Officer is the ICC Model Validation
Framework owner and is responsible to
the ICC President for the successful
operation and maintenance of the ICC
Model Validation Framework.
ICC considers both new Model
Components and enhancements to
Model Components as part of its Model
Validation Framework (collectively,
‘‘Model Change’’). New Model
Components consider risk drivers that
are not currently included in the risk
management system; enhanced Model
Components improve upon the
methodologies used by the risk
management system to consider a given
risk driver or drivers. ICC classifies
Model Changes as either Materiality A
or Materiality B, depending on how
substantially the Model Change affects
the risk management system’s
assessment of risk for the related risk
driver or drivers. The ICC Chief Risk
Officer and the ICC Risk Oversight
Officer will review all enhancements to
ICC’s risk management system and
decide which enhancements qualify as
Model Changes, and which qualifying
enhancements should be classified as
Materiality A versus Materiality B.
Materiality A Model Changes receive a
higher control standard than Materiality
B Model Changes. The ICC Risk
Committee reviews the materiality
classifications and provides feedback as
necessary.
The ICC Model Validation Framework
sets forth the process for selecting
Model Validators and describes the
independent validator criteria,
including technical expertise and
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independence requirements. The ICC
Model Validation Framework also
describes the Model Inventory which is
maintained by the ICC Risk Department
and which contains key information
about all ICC Model Components and
Model Changes. The ICC Risk Oversight
Officer will review the model inventory
at least quarterly to ensure that it
contains accurate and up to date
information relating to ICC’s Model
Components and Model Changes.
The ICC Model Validation Framework
consists of four controls: Initial
validation; ongoing monitoring and
validation; investigation; and
independent periodic review. Before
going live with a Model Change, ICC
must successfully complete an initial
validation of the conceptual soundness
of the methodology and the proposed
ongoing monitoring and validation
approach. All Model Changes are
subject to internal initial validation. In
addition, Materiality A Model Changes
are subject to an additional independent
initial validation.
Ongoing monitoring and validation
provides assurances that ICC has
appropriately configured and calibrated
the risk management system, including
any recent Model Change, and that the
risk management system is achieving
the desired level of performance. The
ongoing monitoring and validation
control consists of three areas:
Parameter setting, execution monitoring,
and outcome analysis.
If ongoing monitoring and validation
identifies features of the risk
management system that might indicate
a Model Component weakness, ICC
investigates and identifies the root
cause. If a model weakness is
discovered during investigation, the ICC
Chief Risk Officer informs the ICC Risk
Committee of the ongoing monitoring
and validation results which triggered
the investigation. If ICC is satisfied that
the identified features do not represent
a model weakness, the ICC Chief Risk
Officer will present the results of the
investigation demonstrating no model
weakness exists. If ICC identifies a
model weakness during the
investigation, the ICC Chief Risk Officer
will present the results of the investing
demonstrating a model weakness, and
ICC will remediate the identified
weakness through an appropriate Model
Change, which passes through the ICC
Model Validation Framework starting
with an Initial validation.
The ICC Chief Risk Officer provides
support and information to allow the
independent validators to perform
periodic reviews of all ICC Model
Components and related practices at
least once in every calendar year. At
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27361
ICC’s choosing, the scope of an
independent periodic review may cover
all Model Components used by the risk
management system, or a subset of
Model Components, as long as all Model
Components are included in one or
more independent periodic reviews
each year. The independent periodic
review will demonstrate that the Model
Components remain fit for purpose; that
the Model Components assumptions are
valid; that ICC has adequately addressed
any medium priority open items from
Model Change initial validations and
any other implementation conditions;
and that ICC has been complying with
its ongoing monitoring and validation
requirements and the Model
Components are performing without any
significant weakness. The deliverables
from the independent periodic review
must include a report from the
independent validator providing a
summary of the completed evaluation
and details of any remaining open
items, classified by priority. The ICC
Chief Risk Officer will present the
periodic review to the ICC Risk
Committee and describe ICC’s plans in
relation to any open high or medium
priority items in the report.
(b) Statutory Basis
Section 17A(b)(3)(F) of the ActHD13
requires, among other things, that the
rules of a clearing agency be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions, and to the extent
applicable, derivative agreements,
contracts and transactions and to
comply with the provisions of the Act
and the rules and regulations
thereunder. ICC believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to ICC, in particular, to
Section 17A(b)(3)(F),4 because ICC
believes that the proposed rule change
will promote the prompt and accurate
clearance and settlement of securities
transactions, derivatives agreements,
contracts, and transactions. The ICC
Model Validation Framework provides
assurances as to the appropriateness of
changes to ICC’s risk models, including
the appropriateness of risk
requirements. As such, the proposed
rule change is designed to promote the
prompt and accurate clearance and
settlement of securities transactions,
derivatives agreements, contracts, and
transactions within the meaning of
3 15
U.S.C. 78q–1(b)(3)(F).
4 Id.
E:\FR\FM\12JNN1.SGM
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27362
Federal Register / Vol. 83, No. 113 / Tuesday, June 12, 2018 / Notices
Section 17A(b)(3)(F) 5 of the Act. The
proposed rule change will also satisfy
the requirements of Rule 17Ad–22.6 In
particular, the proposed rule change sets
forth ICC’s model validation procedures,
including the evaluation of the
performance of ICC’s risk models and
related parameters and assumptions by
a qualified and independent Model
Validator, consistent with the
requirements of Rule 17Ad–22(b)(4).7
(B) Clearing Agency’s Statement on
Burden on Competition
ICC does not believe the proposed
rule change would have any impact, or
impose any burden, on competition.
The ICC Model Validation Framework
applies uniformly across all market
participants. Therefore, ICC does not
believe the proposed rule change
impose any burden on competition that
is inappropriate in furtherance of the
purposes of the Act.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed rule change have not been
solicited or received. ICC will notify the
Commission of any written comments
received by ICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
sradovich on DSK3GMQ082PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22.
7 17 CFR 240.17Ad–22(b)(4).
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICC–2018–004 on the subject line.
DEPARTMENT OF STATE
Paper Comments
Notice of Determinations; Culturally
Significant Objects Imported for
Exhibition Determinations: ‘‘John
Singer Sargent and Chicago’s Gilded
Age’’ Exhibition
Send paper comments in triplicate to
Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ICC–2018–004. 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 website (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 website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Credit and on ICE
Clear Credit’s website at https://
www.theice.com/clear-credit/regulation.
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–ICC–2018–004 and
should be submitted on or before July 3,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–12550 Filed 6–11–18; 8:45 am]
BILLING CODE 8011–01–P
Marie Therese Porter Royce,
Assistant Secretary for Educational and
Cultural Affairs, Department of State.
[FR Doc. 2018–12588 Filed 6–11–18; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice 10441]
30-Day Notice of Proposed Information
Collection: Six DDTC Information
Collections
Notice of request for public
comments.
The Department of State has
submitted the information collection
SUMMARY:
6 17
16:21 Jun 11, 2018
Notice is hereby given of the
following determinations: I hereby
determine that certain objects to be
included in the exhibition ‘‘John Singer
Sargent and Chicago’s Gilded Age,’’
imported from abroad for temporary
exhibition within the United States, are
of cultural significance. The objects are
imported pursuant to loan agreements
with the foreign owners or custodians.
I also determine that the exhibition or
display of the exhibit objects at The Art
Institute of Chicago, in Chicago, Illinois,
from on or about July 1, 2018, until on
or about September 30, 2018, and at
possible additional exhibitions or
venues yet to be determined, is in the
national interest. I have ordered that
Public Notice of these determinations be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT:
Elliot Chiu, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–632–6471; email:
section2459@state.gov). The mailing
address is U.S. Department of State,
L/PD, SA–5, Suite 5H03, Washington,
DC 20522–0505.
SUPPLEMENTARY INFORMATION: The
foregoing determinations were made
pursuant to the authority vested in me
by the Act of October 19, 1965 (79 Stat.
985; 22 U.S.C. 2459), E.O. 12047 of
March 27, 1978, the Foreign Affairs
Reform and Restructuring Act of 1998
(112 Stat. 2681, et seq.; 22 U.S.C. 6501
note, et seq.), Delegation of Authority
No. 234 of October 1, 1999, and
Delegation of Authority No. 236–3 of
August 28, 2000.
SUMMARY:
ACTION:
5 15
VerDate Sep<11>2014
[Public Notice 10438]
8 17
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CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 83, Number 113 (Tuesday, June 12, 2018)]
[Notices]
[Pages 27360-27362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12550]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83386; File No. SR-ICC-2018-004]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change Relating to Formalization of the ICC
Model Validation Framework
June 6, 2018.
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 May 23, 2018, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I, II and III below, which Items have been
prepared by ICC. 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.
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The principal purpose of the proposed rule change is to formalize
the ICC Model Validation Framework. This change does not require any
revisions to the ICC Clearing Rules.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, ICC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. ICC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.
[[Page 27361]]
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(a) Summary of Proposed Changes
ICC proposes to formalize the ICC Model Validation Framework, which
sets forth ICC's model validation procedures. ICC has developed a
proprietary risk management system that models the risk of credit
default swap based portfolios and determines appropriate Initial Margin
and Guaranty Fund requirements. The risk management system is composed
of risk modeling components (``Model Components'') which employ a
combination of statistical analysis of credit spread time series and
stress test simulation scenarios to address different risk drivers. The
risk drivers addressed by the Model Components constitute the
foundation of total Initial Margin and Guaranty Fund requirements for
cleared portfolios. The ICC Model Validation Framework provides
assurances as to the appropriateness of its risk requirements. ICC's
Risk Oversight Officer is the ICC Model Validation Framework owner and
is responsible to the ICC President for the successful operation and
maintenance of the ICC Model Validation Framework.
ICC considers both new Model Components and enhancements to Model
Components as part of its Model Validation Framework (collectively,
``Model Change''). New Model Components consider risk drivers that are
not currently included in the risk management system; enhanced Model
Components improve upon the methodologies used by the risk management
system to consider a given risk driver or drivers. ICC classifies Model
Changes as either Materiality A or Materiality B, depending on how
substantially the Model Change affects the risk management system's
assessment of risk for the related risk driver or drivers. The ICC
Chief Risk Officer and the ICC Risk Oversight Officer will review all
enhancements to ICC's risk management system and decide which
enhancements qualify as Model Changes, and which qualifying
enhancements should be classified as Materiality A versus Materiality
B. Materiality A Model Changes receive a higher control standard than
Materiality B Model Changes. The ICC Risk Committee reviews the
materiality classifications and provides feedback as necessary.
The ICC Model Validation Framework sets forth the process for
selecting Model Validators and describes the independent validator
criteria, including technical expertise and independence requirements.
The ICC Model Validation Framework also describes the Model Inventory
which is maintained by the ICC Risk Department and which contains key
information about all ICC Model Components and Model Changes. The ICC
Risk Oversight Officer will review the model inventory at least
quarterly to ensure that it contains accurate and up to date
information relating to ICC's Model Components and Model Changes.
The ICC Model Validation Framework consists of four controls:
Initial validation; ongoing monitoring and validation; investigation;
and independent periodic review. Before going live with a Model Change,
ICC must successfully complete an initial validation of the conceptual
soundness of the methodology and the proposed ongoing monitoring and
validation approach. All Model Changes are subject to internal initial
validation. In addition, Materiality A Model Changes are subject to an
additional independent initial validation.
Ongoing monitoring and validation provides assurances that ICC has
appropriately configured and calibrated the risk management system,
including any recent Model Change, and that the risk management system
is achieving the desired level of performance. The ongoing monitoring
and validation control consists of three areas: Parameter setting,
execution monitoring, and outcome analysis.
If ongoing monitoring and validation identifies features of the
risk management system that might indicate a Model Component weakness,
ICC investigates and identifies the root cause. If a model weakness is
discovered during investigation, the ICC Chief Risk Officer informs the
ICC Risk Committee of the ongoing monitoring and validation results
which triggered the investigation. If ICC is satisfied that the
identified features do not represent a model weakness, the ICC Chief
Risk Officer will present the results of the investigation
demonstrating no model weakness exists. If ICC identifies a model
weakness during the investigation, the ICC Chief Risk Officer will
present the results of the investing demonstrating a model weakness,
and ICC will remediate the identified weakness through an appropriate
Model Change, which passes through the ICC Model Validation Framework
starting with an Initial validation.
The ICC Chief Risk Officer provides support and information to
allow the independent validators to perform periodic reviews of all ICC
Model Components and related practices at least once in every calendar
year. At ICC's choosing, the scope of an independent periodic review
may cover all Model Components used by the risk management system, or a
subset of Model Components, as long as all Model Components are
included in one or more independent periodic reviews each year. The
independent periodic review will demonstrate that the Model Components
remain fit for purpose; that the Model Components assumptions are
valid; that ICC has adequately addressed any medium priority open items
from Model Change initial validations and any other implementation
conditions; and that ICC has been complying with its ongoing monitoring
and validation requirements and the Model Components are performing
without any significant weakness. The deliverables from the independent
periodic review must include a report from the independent validator
providing a summary of the completed evaluation and details of any
remaining open items, classified by priority. The ICC Chief Risk
Officer will present the periodic review to the ICC Risk Committee and
describe ICC's plans in relation to any open high or medium priority
items in the report.
(b) Statutory Basis
Section 17A(b)(3)(F) of the ActHD1\3\ requires, among other things,
that the rules of a clearing agency be designed to promote the prompt
and accurate clearance and settlement of securities transactions, and
to the extent applicable, derivative agreements, contracts and
transactions and to comply with the provisions of the Act and the rules
and regulations thereunder. ICC believes that the proposed rule change
is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to ICC, in particular, to Section
17A(b)(3)(F),\4\ because ICC believes that the proposed rule change
will promote the prompt and accurate clearance and settlement of
securities transactions, derivatives agreements, contracts, and
transactions. The ICC Model Validation Framework provides assurances as
to the appropriateness of changes to ICC's risk models, including the
appropriateness of risk requirements. As such, the proposed rule change
is designed to promote the prompt and accurate clearance and settlement
of securities transactions, derivatives agreements, contracts, and
transactions within the meaning of
[[Page 27362]]
Section 17A(b)(3)(F) \5\ of the Act. The proposed rule change will also
satisfy the requirements of Rule 17Ad-22.\6\ In particular, the
proposed rule change sets forth ICC's model validation procedures,
including the evaluation of the performance of ICC's risk models and
related parameters and assumptions by a qualified and independent Model
Validator, consistent with the requirements of Rule 17Ad-22(b)(4).\7\
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78q-1(b)(3)(F).
\4\ Id.
\5\ 15 U.S.C. 78q-1(b)(3)(F).
\6\ 17 CFR 240.17Ad-22.
\7\ 17 CFR 240.17Ad-22(b)(4).
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
ICC does not believe the proposed rule change would have any
impact, or impose any burden, on competition. The ICC Model Validation
Framework applies uniformly across all market participants. Therefore,
ICC does not believe the proposed rule change impose any burden on
competition that is inappropriate in furtherance of the purposes of the
Act.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others
Written comments relating to the proposed rule change have not been
solicited or received. ICC will notify the Commission of any written
comments received by ICC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-ICC-2018-004 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities and
Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-ICC-2018-004. 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 website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filings will also be available for inspection
and copying at the principal office of ICE Clear Credit and on ICE
Clear Credit's website at https://www.theice.com/clear-credit/regulation. 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-ICC-2018-004 and should be
submitted on or before July 3, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12550 Filed 6-11-18; 8:45 am]
BILLING CODE 8011-01-P
