Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the Clearance of an Additional Credit Default Swap Contract, 47665-47666 [2018-20434]
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Federal Register / Vol. 83, No. 183 / Thursday, September 20, 2018 / Notices
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–
CBOE–2018–064 on the subject line.
amozie on DSK3GDR082PROD with NOTICES1
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–CBOE–2018–064. 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 the
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–CBOE–2018–064 and
should be submitted on or before
October 11, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–20433 Filed 9–19–18; 8:45 am]
BILLING CODE 8011–01–P
14 17
CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84130; File No. SR–ICC–
2018–007]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Order Approving
Proposed Rule Change Relating to the
Clearance of an Additional Credit
Default Swap Contract
September 14, 2018.
I. Introduction
On June 13, 2018, 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 1 and Rule 19b–4 thereunder,2 a
proposed rule change to revise the ICC
Rulebook (the ‘‘Rules’’) 3 to provide for
the clearance of an additional Standard
Emerging Market Sovereign CDS
contract (‘‘EM Contract’’). The proposed
rule change was published for comment
in the Federal Register on July 3, 2018.4
The Commission did not receive
comments regarding the proposed rule
change. On August 16, 2018, the
Commission designated a longer period
for Commission action on the proposed
rule change.5 For the reasons discussed
below, the Commission is approving the
proposed rule change.
II. Description of the Proposed Rule
Change
The proposed rule change will
provide the basis for ICC to clear an
additional credit default swap contract.
ICC proposes to amend Subchapter 26D
of its Rules to provide for the clearance
of an additional EM Contract, the
Lebanese Republic. ICC represents that
this additional EM Contract has terms
consistent with the other EM Contracts
approved for clearing at ICC and is
governed by Subchapter 26D of the
Rules.6 Minor revisions to Subchapter
26D (Standard Emerging Market
Sovereign (‘‘SES’’) Single Name) are
being made to provide for clearing the
additional EM Contract. Specifically, in
Rule 26D–102 (Definitions), ‘‘Eligible
SES Reference Entities’’ is modified to
include the Lebanese Republic in the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Capitalized terms used herein but not otherwise
defined have the meaning set forth in the ICC Rules.
Available at https://www.theice.com/publicdocs/
clear_credit/ICE_Clear_Credit_Rules.pdf.
4 Securities Exchange Act Release No. 34–83545
(June 28, 2018), 83 FR 31244 (July 3, 2018) (SR–
ICC–2018–007) (‘‘Notice’’).
5 Securities Exchange Act Release No. 34–83864
(August 16, 2018), 83 FR 42540 (August 22, 2018)
(SR–ICC–2018–007).
6 Notice, 83 FR at 31245.
2 17
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
47665
list of specific Eligible SES Reference
Entities to be cleared by ICC. ICC has
also represented that clearing of the
additional EM Contract will not require
any changes to ICC’s Risk Management
Framework or other policies and
procedures constituting rules within the
meaning of the Securities Exchange Act
of 1934 (‘‘Act’’).7
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 it finds that such
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to such organization.8
Section 17A(b)(3)(F) of the Act requires,
among other things, that the rules of a
registered clearing agency be designed
to promote the prompt and accurate
clearance and settlement of securities
transactions, assure the safeguarding of
securities and funds which are in the
custody or control of the clearing agency
for which it is responsible and, in
general, to protect investors and the
public interest.9
The Commission finds that the rule
change is consistent with Section
17A(b)(3)(F) of the Act 10 and the rules
and regulations thereunder applicable to
ICC. The Commission has reviewed the
terms and conditions of this contract
and has determined that it is
substantially similar to the other
contracts listed in Subchapter 26D of
the ICC Rules, all of which ICC
currently clears, the key difference
being that the underlying reference
obligations will be issuances by the
Lebanese Republic. Moreover, after
reviewing the Notice and ICC’s Rules,
policies and procedures, the
Commission finds that the additional
EM Contract will be cleared pursuant to
ICC’s existing clearing arrangements and
related financial safeguards, protections
and risk management procedures.11 In
addition, based on its own experience
and expertise, including a review of
data on volume, open interest, and the
number of ICC clearing participants
(‘‘CPs’’) that currently trade in the
additional EM Contract as well as
certain model parameters for the
additional EM Contract, the
Commission finds that ICC’s rules,
policies, and procedures are reasonably
designed to price and measure the
7 Id.
8 15
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1(b)(3)(F).
10 15 U.S.C. 78q–1.
11 Notice, 83 FR at 31245.
9 15
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47666
Federal Register / Vol. 83, No. 183 / Thursday, September 20, 2018 / Notices
potential risk presented by this product,
collect financial resources in proportion
to such risk, and liquidate this product
in the event of a CP default, all of which
should help ensure ICC’s ability to
maintain the financial resources it needs
to provide its critical services and
function as a central counter party,
thereby promoting the prompt and
accurate settlement of EM Contracts and
other credit default swap transactions.
For the same reasons, the Commission
believes that the rule change would help
assure the safeguarding of securities or
funds in the custody or control of ICC,
and would be consistent with the
protection of investors and the public
interest.
Therefore, the Commission finds that
acceptance of the additional EM
Contract, on the terms and conditions
set out in ICC’s Rules, is consistent with
the prompt and accurate clearance 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.12
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular with the requirements of
Section 17A of the Act,13 and the rules
and regulations thereunder.
It is therefore ordered pursuant to
Section 19(b)(2) of the Act 14 that the
proposed rule change (SR–ICC–2018–
007) be, and hereby is, approved.15
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–20434 Filed 9–19–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84127; File No. SR–FINRA–
2018–034]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 2360
(Options) To Increase Position Limits
on Options on Certain ExchangeTraded Funds
position limit for conventional options
on the following exchange-traded funds
(‘‘ETF’’): The Standard and Poor’s
Depositary Receipts Trust (‘‘SPY’’),
iShares Russell 2000 ETF (‘‘IWM’’),
PowerShares QQQ Trust (‘‘QQQ’’),
iShares MSCI Emerging Markets ETF
(‘‘EEM’’), iShares China Large-Cap ETF
(‘‘FXI’’), iShares MSCI EAFE ETF
(‘‘EFA’’), iShares MSCI Brazil Capped
ETF (‘‘EWZ’’), iShares 20+ Year
Treasury Bond Fund ETF (‘‘TLT’’), and
iShares MSCI Japan ETF (‘‘EWJ’’).
Below is the text of the proposed rule
change. Proposed new language is in
italics; proposed deletions are in
brackets.
*
*
*
*
*
2360. Options
(a) No Change.
(b) Requirements
September 14, 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 August
31, 2018, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
this filing by the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 2360 (Options) to increase the
(1) through (2) No Change.
(3) Position Limits
(A) Stock Options—
(i) through (ii) No Change.
(iii) Conventional Equity Options
a. For purposes of this paragraph (b),
standardized equity option contracts of
the put class and call class on the same
side of the market overlying the same
security shall not be aggregated with
conventional equity option contracts or
FLEX Equity Option contracts overlying
the same security on the same side of
the market. Conventional equity option
contracts of the put class and call class
on the same side of the market overlying
the same security shall be subject to a
position limit of:
1. through 5. No Change.
6. for selected conventional options
on exchange-traded funds (‘‘ETF’’), the
position limits are listed in the chart
below:
amozie on DSK3GDR082PROD with NOTICES1
Security underlying option
Position limit
The DIAMONDS Trust (DIA) ....................................................................................................................
The Standard and Poor’s Depositary Receipts Trust (SPY) ...................................................................
The iShares Russell 2000 [Index Fund]ETF (IWM) .................................................................................
The PowerShares QQQ Trust (QQQ[Q]) .................................................................................................
The iShares MSCI Emerging Markets [Index Fund]ETF (EEM) ..............................................................
iShares China Large-Cap ETF (FXI) .......................................................................................................
iShares MSCI EAFE ETF (EFA) ..............................................................................................................
iShares MSCI Brazil Capped ETF (EWZ) ................................................................................................
iShares 20+ Year Treasury Bond Fund ETF (TLT) .................................................................................
iShares MSCI Japan ETF (EWJ) .............................................................................................................
12 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1.
14 15 U.S.C. 78s(b)(2).
15 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).
13 15
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300,000 contracts.
[900,000]1,800,000
[500,000]1,000,000
[900,000]1,800,000
[500,000]1,000,000
500,000 contracts.
500,000 contracts.
500,000 contracts.
500,000 contracts.
500,000 contracts.
16 17
contracts.
contracts.
contracts.
contracts.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
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]]>Agencies
[Federal Register Volume 83, Number 183 (Thursday, September 20, 2018)]
[Notices]
[Pages 47665-47666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20434]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84130; File No. SR-ICC-2018-007]
Self-Regulatory Organizations; ICE Clear Credit LLC; Order
Approving Proposed Rule Change Relating to the Clearance of an
Additional Credit Default Swap Contract
September 14, 2018.
I. Introduction
On June 13, 2018, 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 \1\ and Rule
19b-4 thereunder,\2\ a proposed rule change to revise the ICC Rulebook
(the ``Rules'') \3\ to provide for the clearance of an additional
Standard Emerging Market Sovereign CDS contract (``EM Contract''). The
proposed rule change was published for comment in the Federal Register
on July 3, 2018.\4\ The Commission did not receive comments regarding
the proposed rule change. On August 16, 2018, the Commission designated
a longer period for Commission action on the proposed rule change.\5\
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\ Capitalized terms used herein but not otherwise defined have
the meaning set forth in the ICC Rules. Available at https://www.theice.com/publicdocs/clear_credit/ICE_Clear_Credit_Rules.pdf.
\4\ Securities Exchange Act Release No. 34-83545 (June 28,
2018), 83 FR 31244 (July 3, 2018) (SR-ICC-2018-007) (``Notice'').
\5\ Securities Exchange Act Release No. 34-83864 (August 16,
2018), 83 FR 42540 (August 22, 2018) (SR-ICC-2018-007).
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change
The proposed rule change will provide the basis for ICC to clear an
additional credit default swap contract. ICC proposes to amend
Subchapter 26D of its Rules to provide for the clearance of an
additional EM Contract, the Lebanese Republic. ICC represents that this
additional EM Contract has terms consistent with the other EM Contracts
approved for clearing at ICC and is governed by Subchapter 26D of the
Rules.\6\ Minor revisions to Subchapter 26D (Standard Emerging Market
Sovereign (``SES'') Single Name) are being made to provide for clearing
the additional EM Contract. Specifically, in Rule 26D-102
(Definitions), ``Eligible SES Reference Entities'' is modified to
include the Lebanese Republic in the list of specific Eligible SES
Reference Entities to be cleared by ICC. ICC has also represented that
clearing of the additional EM Contract will not require any changes to
ICC's Risk Management Framework or other policies and procedures
constituting rules within the meaning of the Securities Exchange Act of
1934 (``Act'').\7\
---------------------------------------------------------------------------
\6\ Notice, 83 FR at 31245.
\7\ 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 it finds that
such proposed rule change is consistent with the requirements of the
Act and the rules and regulations thereunder applicable to such
organization.\8\ Section 17A(b)(3)(F) of the Act requires, among other
things, that the rules of a registered clearing agency be designed to
promote the prompt and accurate clearance and settlement of securities
transactions, assure the safeguarding of securities and funds which are
in the custody or control of the clearing agency for which it is
responsible and, in general, to protect investors and the public
interest.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2)(C).
\9\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The Commission finds that the rule change is consistent with
Section 17A(b)(3)(F) of the Act \10\ and the rules and regulations
thereunder applicable to ICC. The Commission has reviewed the terms and
conditions of this contract and has determined that it is substantially
similar to the other contracts listed in Subchapter 26D of the ICC
Rules, all of which ICC currently clears, the key difference being that
the underlying reference obligations will be issuances by the Lebanese
Republic. Moreover, after reviewing the Notice and ICC's Rules,
policies and procedures, the Commission finds that the additional EM
Contract will be cleared pursuant to ICC's existing clearing
arrangements and related financial safeguards, protections and risk
management procedures.\11\ In addition, based on its own experience and
expertise, including a review of data on volume, open interest, and the
number of ICC clearing participants (``CPs'') that currently trade in
the additional EM Contract as well as certain model parameters for the
additional EM Contract, the Commission finds that ICC's rules,
policies, and procedures are reasonably designed to price and measure
the
[[Page 47666]]
potential risk presented by this product, collect financial resources
in proportion to such risk, and liquidate this product in the event of
a CP default, all of which should help ensure ICC's ability to maintain
the financial resources it needs to provide its critical services and
function as a central counter party, thereby promoting the prompt and
accurate settlement of EM Contracts and other credit default swap
transactions. For the same reasons, the Commission believes that the
rule change would help assure the safeguarding of securities or funds
in the custody or control of ICC, and would be consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78q-1.
\11\ Notice, 83 FR at 31245.
---------------------------------------------------------------------------
Therefore, the Commission finds that acceptance of the additional
EM Contract, on the terms and conditions set out in ICC's Rules, is
consistent with the prompt and accurate clearance 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.\12\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
in particular with the requirements of Section 17A of the Act,\13\ and
the rules and regulations thereunder.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
It is therefore ordered pursuant to Section 19(b)(2) of the Act
\14\ that the proposed rule change (SR-ICC-2018-007) be, and hereby is,
approved.\15\
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(2).
\15\ 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.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-20434 Filed 9-19-18; 8:45 am]
BILLING CODE 8011-01-P
