Self-Regulatory Organizations; The Depository Trust Company; Fixed Income Clearing Corporation; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes To Amend the Clearing Agency Frameworks, 53925-53928 [2018-23280]
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Federal Register / Vol. 83, No. 207 / Thursday, October 25, 2018 / Notices
2018–068), as modified by Amendment
No. 1, be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.38
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–23277 Filed 10–24–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84458; File Nos. SR–DTC–
2018–009; SR–FICC–2018–010; SR–NSCC–
2018–009]
Self-Regulatory Organizations; The
Depository Trust Company; Fixed
Income Clearing Corporation; National
Securities Clearing Corporation;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Changes To Amend the Clearing
Agency Frameworks
October 19, 2018.
daltland on DSKBBV9HB2PROD with NOTICES
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
11, 2018, The Depository Trust
Company (‘‘DTC’’), Fixed Income
Clearing Corporation (‘‘FICC’’), and
National Securities Clearing Corporation
(‘‘NSCC,’’ and together with DTC and
FICC, the ‘‘Clearing Agencies’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule changes as described in
Items I and II below, which Items have
been prepared primarily by the Clearing
Agencies. The Clearing Agencies filed
the proposed rule changes pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
changes from interested persons.
I. Clearing Agencies’ Statements of the
Terms of Substance of the Proposed
Rule Changes
The proposed rule changes would
amend the Clearing Agency Stress
Testing Framework (Market Risk)
(‘‘Stress Testing Framework’’), Clearing
Agency Liquidity Risk Management
Framework (‘‘Liquidity Risk
Management Framework’’), Clearing
Agency Model Risk Management
Framework (‘‘Model Risk Management
Framework’’), Clearing Agency
Operational Risk Management
Framework (‘‘Operational Risk
Management Framework’’), Clearing
Agency Risk Management Framework
(‘‘Risk Management Framework’’),
Clearing Agency Securities Valuation
Framework (‘‘Securities Valuation
Framework’’), Clearing Agency Policy
on Capital Requirements (‘‘Capital
Policy’’), and Clearing Agency Capital
Replenishment Plan (‘‘Capital
Replenishment Plan,’’ and, together
with the Stress Testing Framework,
Liquidity Risk Management Framework,
Model Risk Management Framework,
Operational Risk Management
Framework, Risk Management
Framework, Securities Valuation
Framework and Capital Policy, the
‘‘Clearing Agency Frameworks’’ or
‘‘Frameworks’’) of the Clearing
Agencies.
Specifically, the proposed rule
changes would (1) amend each of the
Clearing Agency Frameworks to
incorporate and align with an existing
delegation of authority to the General
Counsel and Deputy General Counsels
of the Clearing Agencies to approve
certain changes to the Clearing Agency
Frameworks; (2) revise the identification
of the individuals who own and manage
the Frameworks, where applicable; (3)
make further corrections and
clarifications to the Stress Testing
Framework, including revisions to the
description of responsibilities of certain
groups and expansion of reverse stress
testing analyses, as further described
below; and (4) correct the description of
an assumption underlying a stress
scenario in the Liquidity Risk
Management Framework, as further
described below.
II. Clearing Agencies’ Statements of the
Purpose of, and Statutory Basis for, the
Proposed Rule Changes
In their filings with the Commission,
the Clearing Agencies included
statements concerning the purpose of
and basis for the proposed rule changes
and discussed any comments they
received on the proposed rule changes.
The text of these statements may be
examined at the places specified in Item
IV below. The Clearing Agencies have
prepared summaries, set forth in
sections A, B, and C below, of the most
significant aspects of such statements.
38 17
CFR 200.30–3(a)(12).
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)(6).
1 15
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53925
(A) Clearing Agencies’ Statements of the
Purpose of, and Statutory Basis for, the
Proposed Rule Changes
1. Purpose
The Clearing Agencies adopted the
Clearing Agency Frameworks 5 in order
to set forth the manner in which each
of the Clearing Agencies addresses
certain risks as required by Rule 17Ad–
22(e) under the Act,6 as described in the
Initial Filings. In addition to setting
forth the manner in which each of the
Clearing Agencies addresses the
requirements of Rule 17Ad–22(e), each
Framework also contains a section titled
‘‘Framework Ownership and Change
Management’’ that, among other
matters, identifies the title of the
individual or group who owns and is
responsible for managing the
Framework and describes the required
governance process for review and
approval of changes to the Framework.
The Clearing Agencies are proposing
to (1) amend each of the Clearing
Agency Frameworks in order to align
with an existing delegation of authority
to the General Counsel and Deputy
General Counsels of the Clearing
Agencies to approve certain changes to
the Clearing Agency Frameworks; (2)
revise the identification of the
individuals who own and manage the
Frameworks, where applicable; (3) make
further corrections and clarifications to
the Stress Testing Framework, including
revisions to the description of
responsibilities of certain groups and
expansion of the reverse stress testing
analyses, as further described below;
and (4) correct the description of an
assumption underlying a stress scenario
in the Liquidity Risk Management
Framework, as further described below.
5 See Securities Exchange Act Release Nos. 82368
(December 19, 2017), 82 FR 61082 (December 26,
2017) (SR–DTC–2017–005; SR–FICC–2017–009;
SR–NSCC–2017–006) (Stress Testing Framework);
82377 (December 21, 2017), 82 FR 61617 (December
28, 2017) (SR–DTC–2017–004; SR–NSCC–2017–
005; SR–FICC–2017–008) (Liquidity Risk
Management Framework); 81485 (August 25, 2017),
82 FR 41433 (August 31, 2017) (SR–DTC–2017–008;
SR–FICC–2017–014; SR–NSCC–2017–008) (Model
Risk Management Framework); 81745 (September
28, 2017), 82 FR 46332 (October 4, 2017) (SR–DTC–
2017–014; SR–NSCC–2017–013; SR–FICC–2017–
017) (Operational Risk Management Framework);
81635 (September 15, 2017), 82 FR 44224
(September 21, 2017) (SR–DTC–2017–013; SR–
NSCC–2017–012; SR–FICC–2017–016) (Risk
Management Framework); 82006 (November 2,
2017), 82 FR 51892 (November 8, 2017) (SR–DTC–
2017–016; SR–NSCC–2017–016; SR–FICC–2017–
020) (Securities Valuation Framework); 81105 (July
7, 2017), 82 FR 32399 (July 13, 2017) (SR–DTC–
2017–003, SR–FICC–2017–007, SR–NSCC–2017–
004) (Capital Policy and Capital Replenishment
Plan) (each, an ‘‘Initial Filing’’ and collectively,
‘‘Initial Filings’’).
6 17 CFR 240.17Ad–22(e).
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Federal Register / Vol. 83, No. 207 / Thursday, October 25, 2018 / Notices
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i. Proposed Amendments Regarding
Delegation of Authority for Change
Management
Currently, most of the Clearing
Agency Frameworks (with the exception
of the Capital Policy and Capital
Replenishment Plan) include a
statement within the ‘‘Framework
Ownership and Change Management’’
section that any change to the
Framework must be approved by the
Boards, or such committees as may be
delegated authority by the Boards from
time to time pursuant to their charters.
The Capital Policy and Capital
Replenishment Plan each provide that
‘‘routine’’ changes to these documents
be approved by the DTCC Treasury
Group,7 which owns these documents,
and that ‘‘material’’ changes to these
documents be approved by the Boards,
or such committees as may be delegated
authority by the Boards from time to
time pursuant to their charters.
The Boards have delegated to the
General Counsel and the Deputy
General Counsels of the Clearing
Agencies the authority to approve
certain proposed rule changes of the
Clearing Agencies and the filings with
respect to such proposed rule changes
required by Rule 19b–4 under the Act.8
Specifically, the Boards have delegated
to the General Counsel and Deputy
General Counsels of the Clearing
Agencies authority to approve (1)
proposed rule changes that may be filed
pursuant to Section 19(b)(3)(A) of the
Act,9 (2) proposed rule changes that
constitute clarifications, corrections or
minor changes in the rules of the
Clearing Agencies but that will not be
filed pursuant to Section 19(b)(3)(A) of
the Act,10 in each case, other than any
rule change where the aggregate annual
fees generated as a result of such rule
change are anticipated to be more than
$1,000,000 at the time of the filing, and
(3) all proposed changes that are subject
to an advance notice as required by Rule
19b–4(n) under the Act 11 but do not
constitute a change to the rules of
Clearing Agencies.
Therefore, the statement within the
‘‘Framework Ownership and Change
Management’’ section of the Clearing
7 The parent company of the Clearing Agencies is
The Depository Trust & Clearing Corporation
(‘‘DTCC’’). DTCC operates on a shared services
model with respect to the Clearing Agencies and its
other subsidiaries. Most corporate functions are
established and managed on an enterprise-wide
basis pursuant to intercompany agreements under
which it is generally DTCC that provides a relevant
service to a subsidiary, including the Clearing
Agencies.
8 17 CFR 240.19b–4.
9 15 U.S.C. 78s(b)(3)(A).
10 Id.
11 17 CFR 240.19b–4(n).
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Agency Frameworks that the Boards or
committees of the Board must approve
changes to the Clearing Agency
Frameworks is inconsistent with these
existing delegations of approval
authority. As such, the Clearing
Agencies are proposing to amend each
of the Clearing Agency Frameworks to
clarify that changes to the Clearing
Agency Frameworks may be approved
by (1) the Boards, (2) such Board
committees as may be delegated
authority by the Boards from time to
time pursuant to their charters, or (3),
with respect to certain changes, the
General Counsel or Deputy General
Counsels of the Clearing Agencies,
pursuant to authority delegated by the
Boards and with the advice and
direction of the Framework owner.
The proposed change would make the
Clearing Agency Frameworks consistent
with existing internal delegations of
authority and would also facilitate
expedited review and approval of
changes that may not require the review
and approval of the Boards or
committees of the Boards.
ii. Proposed Revision to the
Identification of the Clearing Agency
Frameworks’ Owners
The ‘‘Framework Ownership and
Change Management’’ section in most of
the Clearing Agency Frameworks (with
the exception of the Capital Policy and
the Capital Replenishment Plan) 12 also
identifies the individual who owns and
manages that Framework. Currently,
each of the Frameworks identifies the
title of that individual. The Clearing
Agencies are proposing to revise each of
the Clearing Agency Frameworks to
remove the title of that individual and
instead provide that the individual who
owns and manages the Framework is an
officer within the applicable business
group. The proposed change would
permit the Clearing Agencies to change
the title of the individual who owns and
manages the Clearing Agency
Frameworks, so long as that individual
is an officer of the Clearing Agencies.
iii. Proposed Revisions to Stress Testing
Framework
The Stress Testing Framework
describes the procedures by which the
Clearing Agencies perform stress testing
of each of their respective total
prefunded financial resources, exclusive
of assessments for additional
contributions or other resources that are
not prefunded that may be available to
the Clearing Agencies and is maintained
by the Clearing Agencies pursuant to
Rule 17Ad–22(e)(4) under the Act.13 In
addition to the proposed changes
discussed above, the Clearing Agencies
are proposing to make the following
changes to the Stress Testing
Framework.
First, the Clearing Agencies are
proposing to enhance the descriptions
of certain matters within the Stress
Testing Framework that would clarify,
but would not substantively change,
those statements. The proposed
revisions would enhance the clarity of
the current description of the purpose of
the Clearing Agencies’ stress testing
methodologies and the description of
the monthly review and evaluation of
the stress testing results and underlying
parameters and assumptions. The
proposed changes would state that the
monthly review would include (1)
analyses of model parameters, model
assumptions, and model performance;
and (2) evaluation of the set of stress
scenarios to confirm their continued
comprehensiveness and relevance.
Second, the Clearing Agencies are
proposing to revise the Stress Testing
Framework to update the
responsibilities of certain groups within
the DTCC Group Chief Risk Office
(‘‘GCRO’’). For example, the Clearing
Agencies are proposing to revise the
Stress Testing Framework to reflect that,
due to a recent reorganization within
the GCRO, certain tasks that were
previously the responsibility of the
Market Analytics group were delegated
to the Systemic Risk Office, including
the responsibility for designing
macroeconomic scenarios that are used
in the development of hypothetical
scenarios used in stress testing.
Additionally, the Clearing Agencies are
separately proposing to revise the Stress
Testing Framework to clarify that
certain responsibilities of the Data and
Portfolio Analytics group (‘‘DPA’’)
require input from other groups within
the Quantitative Risk Management team
(‘‘QRM’’) of the GCRO by replacing
‘‘DPA’’ with ‘‘QRM’’ in the descriptions
of these responsibilities.
Finally, the Clearing Agencies are
proposing to update the descriptions of
reverse stress testing analyses within the
Stress Testing Framework to reflect the
current practice of performing these
analyses for each of the Clearing
Agencies.14 Reverse stress testing
13 See
supra note 5; 17 CFR 240.17Ad–22(e)(4).
stress testing is a method for
identifying events that may cause a Clearing Agency
to exhaust its prefunded financial resources.
Reverse stress testing could involve, for example,
assuming that a particular set of circumstances, or
event, does exhaust a Clearing Agency’s prefunded
14 Reverse
12 The Capital Policy and the Capital
Replenishment Plan are both owned by the DTCC
Treasury Group. Therefore, the Clearing Agencies
are not proposing changes to these documents with
respect to their ownership.
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Federal Register / Vol. 83, No. 207 / Thursday, October 25, 2018 / Notices
analyses are performed on at least a
semi-annual basis and provide another
means for testing the sufficiency of the
Clearing Agencies’ respective prefunded
financial resources, in addition to the
stress testing that is performed by the
Clearing Agencies pursuant to the
requirements of Rule 17Ad–22(e)(4)
under the Act.15 The Stress Testing
Framework currently states that the
reverse stress testing analyses are
performed for FICC and NSCC. Since
the implementation of the Stress Testing
Framework, the Clearing Agencies have
expanded these analyses to cover DTC
as well. Therefore, the Clearing
Agencies are proposing to update the
Stress Testing Framework to reflect the
current practice of performing reverse
stress testing analyses for each of the
Clearing Agencies.
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iv. Proposed Correction to Liquidity
Risk Management Framework
The Liquidity Risk Management
Framework sets forth the manner in
which each of the Clearing Agencies
measures, monitors and manages the
liquidity risks that arise in or are borne
by such Clearing Agency, including (i)
the manner in which each Clearing
Agency deploys its liquidity tools to
meet its settlement obligations on an
ongoing and timely basis and (ii) each
applicable Clearing Agency’s use of
intraday liquidity, in accordance with
applicable legal requirements. The
Liquidity Risk Management Framework
assists the Clearing Agencies with the
requirements of Rule 17Ad–22(e)(7)
under the Act.16
In addition to the proposed changes
discussed above, the Clearing Agencies
are proposing to correct an error in the
examples of assumptions that may be
used in the Level 1 stress scenarios that
are used in the Clearing Agencies’ daily
liquidity analyses, as described in the
Initial Filing. Currently, the Liquidity
Risk Management Framework states that
these assumptions may include the
simultaneous default, without prior
warning, of all members of the affiliated
family with the largest settlement
obligations. The proposed change would
remove ‘‘without prior warning,’’ which
was included in error, as the
assumption that may be used for Level
1 stress scenarios would assume some
prior warning or expectation of this
event.
financial resources, and then determining the size
of security price movements in those
circumstances.
15 17 CFR 240.17Ad–22(e)(4).
16 See supra note 5; 17 CFR 240.17Ad–22(e)(7).
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2. Statutory Basis
The Clearing Agencies believe that the
proposed changes are consistent with
Section 17A(b)(3)(F) of the Act, which
requires, in part, that the rules of a
registered clearing agency be designed
to promote the prompt and accurate
clearance and settlement of securities
transactions, and to assure the
safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible, for the reasons described
below.17
The proposed change to reflect the
existing delegation of authority to the
General Counsel and Deputy General
Counsels of the Clearing Agencies to
approve certain changes to the Clearing
Agency Frameworks would align the
change management process applicable
to the Frameworks to existing
governance and delegations of authority
within the Clearing Agencies. The
proposed change would also permit an
expedited review and approval of
changes that do not require action by
the Boards or Board committees. In this
way, the proposed change would
simplify the steps necessary for the
Clearing Agencies to make certain nonmaterial changes to the Clearing Agency
Frameworks, subject to required
regulatory review and approval of such
changes. The proposed change to revise
the identification of the individual who
owns and manages certain of the
Clearing Agency Frameworks to an
officer within the relevant business unit
would provide the Clearing Agencies
with flexibility to change that
individual or the title of that individual,
while ensuring the owner has an
appropriate level of authority.
The other proposed changes to the
Stress Testing Framework and the
Liquidity Risk Management Framework
would clarify and correct the
descriptions of certain matters, as
described above. For example, the
proposed change to clarify in the Stress
Testing Framework that reverse stress
testing may be performed for each of the
Clearing Agencies would update this
Framework to reflect current practice
and would correct the existing
statements that such analyses are only
performed for FICC and NSCC. By
creating clearer descriptions, updating
descriptions to reflect current practice,
and correcting errors, the Clearing
Agencies believe that the proposed
changes would make these Frameworks
more effective in providing an overview
of the important risk management
activities described therein.
17 15
PO 00000
U.S.C. 78q–1(b)(3)(F).
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53927
As described in the Initial Filings, the
risk management functions described in
the Clearing Agency Frameworks allow
the Clearing Agencies to continue the
prompt and accurate clearance and
settlement of securities and can
continue to assure the safeguarding of
securities and funds which are in their
custody or control or for which they are
responsible notwithstanding the default
of a member of an affiliated family. The
proposed changes to improve the clarity
and accuracy of the descriptions of
these functions within the Clearing
Agency Frameworks would assist the
Clearing Agencies in carrying out these
risk management functions. Therefore,
the Clearing Agencies believe the
proposed changes are consistent with
the requirements of Section 17A(b)(3)(F)
of the Act.18
(B) Clearing Agencies’ Statements on
Burden on Competition
The Clearing Agencies do not believe
that the proposed changes to the
Clearing Agency Frameworks described
above would have any impact, or
impose any burden, on competition. As
described above, the proposed rule
changes would improve the change
management process applicable to the
Clearing Agency Frameworks, and
would improve the clarity and accuracy
of the descriptions of certain matters
within the Frameworks. Therefore, the
proposed changes are technical and
non-material in nature, relating mostly
to the operation of the Clearing Agency
Frameworks rather than the risk
management functions described
therein.
Further, the Clearing Agencies do not
believe that the proposed change to
update the Stress Testing Framework to
state that reverse stress testing may be
performed for each of the Clearing
Agencies would have any impact, or
impose any burden, on competition.
The proposed change would reflect the
recent expansion of reverse stress
testing to cover DTC and, similar to the
use of reverse stress testing with NSCC
and FICC, these analyses are applied
consistently to all DTC participants.
As such, the Clearing Agencies do not
believe that the proposed rule changes
would have any impact on competition.
(C) Clearing Agencies’ Statements on
Comments on the Proposed Rule
Changes Received From Members,
Participants, or Others
The Clearing Agencies have not
solicited or received any written
comments relating to this proposal. The
Clearing Agencies will notify the
18 Id.
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Federal Register / Vol. 83, No. 207 / Thursday, October 25, 2018 / Notices
Commission of any written comments
received by the Clearing Agencies.
III. Date of Effectiveness of the
Proposed Rule Changes, and Timing for
Commission Action
Because the foregoing proposed rule
changes do not:
(i) Significantly affect the protection
of investors or the public interest;
(ii) impose any significant burden on
competition; and
(iii) become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 19 and Rule 19b–4(f)(6)
thereunder.20
A proposed rule change filed under
Rule 19b–4(f)(6) 21 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii),22 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest.
The Clearing Agencies have asked the
Commission to designate a shorter time
for the proposal to become operative.
The Clearing Agencies state that the
proposed rule changes would allow the
Clearing Agencies to maintain clear and
accurate internal procedures, and avoid
any errors in carrying out the important
responsibilities described therein. The
Commission believes that allowing the
Clearing Agencies to maintain clear and
accurate internal procedures and avoid
potential confusion in carrying out their
responsibilities is consistent with the
protection of investors and the public
interest given the important role that the
Clearing Agencies play in the financial
markets. Accordingly, the Commission
waives the 30-day operative delay and
designates the proposed rule changes to
be operative upon filing.23
At any time within 60 days of the
filing of the proposed rule changes, the
Commission summarily may
temporarily suspend such rule changes
if they appear 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.
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IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
19 15
20 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
21 Id.
22 17
CFR 240.19b-4(f)(6)(iii).
purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
23 For
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arguments concerning the foregoing,
including whether the proposed rule
changes are 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.24
Eduardo A. Aleman,
Assistant Secretary.
Electronic Comments
[FR Doc. 2018–23280 Filed 10–24–18; 8:45 am]
• 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 Numbers
SR–DTC–2018–009, SR–FICC–2018–
010, or SR–NSCC–2018–009 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
All submissions should refer to File
Numbers SR–DTC–2018–009, SR–FICC–
2018–010, or SR–NSCC–2018–009. 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
changes that are filed with the
Commission, and all written
communications relating to the
proposed rule changes 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 DTC and on DTCC’s website
(https://dtcc.com/legal/sec-rulefilings.aspx). 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 Numbers SR–DTC–
2018–009, SR–FICC–2018–010, or SR–
NSCC–2018–009 and should be
submitted on or before November 15,
2018.
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84456; File No. SR–
CboeBZX–2018–078]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing of
a Proposed Rule Change To List and
Trade Shares of the WisdomTree LongTerm Treasury PutWrite Strategy Fund,
WisdomTree Corporate Bond PutWrite
Strategy Fund, WisdomTree
International PutWrite Strategy Fund,
and WisdomTree Emerging Markets
PutWrite Strategy Fund, Each a Series
of WisdomTree Trust, Under Rule
14.11(i), Managed Fund Shares
October 19, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
9, 2018, Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) 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 the Exchange. 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 Substance of
the Proposed Rule Change
The Exchange filed a proposal to list
and trade shares of the WisdomTree
Long-Term Treasury PutWrite Strategy
Fund, WisdomTree Corporate Bond
PutWrite Strategy Fund, WisdomTree
International PutWrite Strategy Fund,
and WisdomTree Emerging Markets
PutWrite Strategy Fund, each a series of
the WisdomTree Trust (the ‘‘Trust’’),
under Rule 14.11(i) (‘‘Managed Fund
Shares’’).
The text of the proposed rule change
is available at the Exchange’s website at
www.markets.cboe.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
24 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\25OCN1.SGM
25OCN1
]]>Agencies
[Federal Register Volume 83, Number 207 (Thursday, October 25, 2018)]
[Notices]
[Pages 53925-53928]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23280]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84458; File Nos. SR-DTC-2018-009; SR-FICC-2018-010; SR-
NSCC-2018-009]
Self-Regulatory Organizations; The Depository Trust Company;
Fixed Income Clearing Corporation; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Changes To Amend the Clearing Agency Frameworks
October 19, 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 October 11, 2018, The Depository Trust Company (``DTC''), Fixed
Income Clearing Corporation (``FICC''), and National Securities
Clearing Corporation (``NSCC,'' and together with DTC and FICC, the
``Clearing Agencies'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule changes as described in
Items I and II below, which Items have been prepared primarily by the
Clearing Agencies. The Clearing Agencies filed the proposed rule
changes pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule changes from interested persons.
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\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)(6).
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I. Clearing Agencies' Statements of the Terms of Substance of the
Proposed Rule Changes
The proposed rule changes would amend the Clearing Agency Stress
Testing Framework (Market Risk) (``Stress Testing Framework''),
Clearing Agency Liquidity Risk Management Framework (``Liquidity Risk
Management Framework''), Clearing Agency Model Risk Management
Framework (``Model Risk Management Framework''), Clearing Agency
Operational Risk Management Framework (``Operational Risk Management
Framework''), Clearing Agency Risk Management Framework (``Risk
Management Framework''), Clearing Agency Securities Valuation Framework
(``Securities Valuation Framework''), Clearing Agency Policy on Capital
Requirements (``Capital Policy''), and Clearing Agency Capital
Replenishment Plan (``Capital Replenishment Plan,'' and, together with
the Stress Testing Framework, Liquidity Risk Management Framework,
Model Risk Management Framework, Operational Risk Management Framework,
Risk Management Framework, Securities Valuation Framework and Capital
Policy, the ``Clearing Agency Frameworks'' or ``Frameworks'') of the
Clearing Agencies.
Specifically, the proposed rule changes would (1) amend each of the
Clearing Agency Frameworks to incorporate and align with an existing
delegation of authority to the General Counsel and Deputy General
Counsels of the Clearing Agencies to approve certain changes to the
Clearing Agency Frameworks; (2) revise the identification of the
individuals who own and manage the Frameworks, where applicable; (3)
make further corrections and clarifications to the Stress Testing
Framework, including revisions to the description of responsibilities
of certain groups and expansion of reverse stress testing analyses, as
further described below; and (4) correct the description of an
assumption underlying a stress scenario in the Liquidity Risk
Management Framework, as further described below.
II. Clearing Agencies' Statements of the Purpose of, and Statutory
Basis for, the Proposed Rule Changes
In their filings with the Commission, the Clearing Agencies
included statements concerning the purpose of and basis for the
proposed rule changes and discussed any comments they received on the
proposed rule changes. The text of these statements may be examined at
the places specified in Item IV below. The Clearing Agencies have
prepared summaries, set forth in sections A, B, and C below, of the
most significant aspects of such statements.
(A) Clearing Agencies' Statements of the Purpose of, and Statutory
Basis for, the Proposed Rule Changes
1. Purpose
The Clearing Agencies adopted the Clearing Agency Frameworks \5\ in
order to set forth the manner in which each of the Clearing Agencies
addresses certain risks as required by Rule 17Ad-22(e) under the
Act,\6\ as described in the Initial Filings. In addition to setting
forth the manner in which each of the Clearing Agencies addresses the
requirements of Rule 17Ad-22(e), each Framework also contains a section
titled ``Framework Ownership and Change Management'' that, among other
matters, identifies the title of the individual or group who owns and
is responsible for managing the Framework and describes the required
governance process for review and approval of changes to the Framework.
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\5\ See Securities Exchange Act Release Nos. 82368 (December 19,
2017), 82 FR 61082 (December 26, 2017) (SR-DTC-2017-005; SR-FICC-
2017-009; SR-NSCC-2017-006) (Stress Testing Framework); 82377
(December 21, 2017), 82 FR 61617 (December 28, 2017) (SR-DTC-2017-
004; SR-NSCC-2017-005; SR-FICC-2017-008) (Liquidity Risk Management
Framework); 81485 (August 25, 2017), 82 FR 41433 (August 31, 2017)
(SR-DTC-2017-008; SR-FICC-2017-014; SR-NSCC-2017-008) (Model Risk
Management Framework); 81745 (September 28, 2017), 82 FR 46332
(October 4, 2017) (SR-DTC-2017-014; SR-NSCC-2017-013; SR-FICC-2017-
017) (Operational Risk Management Framework); 81635 (September 15,
2017), 82 FR 44224 (September 21, 2017) (SR-DTC-2017-013; SR-NSCC-
2017-012; SR-FICC-2017-016) (Risk Management Framework); 82006
(November 2, 2017), 82 FR 51892 (November 8, 2017) (SR-DTC-2017-016;
SR-NSCC-2017-016; SR-FICC-2017-020) (Securities Valuation
Framework); 81105 (July 7, 2017), 82 FR 32399 (July 13, 2017) (SR-
DTC-2017-003, SR-FICC-2017-007, SR-NSCC-2017-004) (Capital Policy
and Capital Replenishment Plan) (each, an ``Initial Filing'' and
collectively, ``Initial Filings'').
\6\ 17 CFR 240.17Ad-22(e).
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The Clearing Agencies are proposing to (1) amend each of the
Clearing Agency Frameworks in order to align with an existing
delegation of authority to the General Counsel and Deputy General
Counsels of the Clearing Agencies to approve certain changes to the
Clearing Agency Frameworks; (2) revise the identification of the
individuals who own and manage the Frameworks, where applicable; (3)
make further corrections and clarifications to the Stress Testing
Framework, including revisions to the description of responsibilities
of certain groups and expansion of the reverse stress testing analyses,
as further described below; and (4) correct the description of an
assumption underlying a stress scenario in the Liquidity Risk
Management Framework, as further described below.
[[Page 53926]]
i. Proposed Amendments Regarding Delegation of Authority for Change
Management
Currently, most of the Clearing Agency Frameworks (with the
exception of the Capital Policy and Capital Replenishment Plan) include
a statement within the ``Framework Ownership and Change Management''
section that any change to the Framework must be approved by the
Boards, or such committees as may be delegated authority by the Boards
from time to time pursuant to their charters. The Capital Policy and
Capital Replenishment Plan each provide that ``routine'' changes to
these documents be approved by the DTCC Treasury Group,\7\ which owns
these documents, and that ``material'' changes to these documents be
approved by the Boards, or such committees as may be delegated
authority by the Boards from time to time pursuant to their charters.
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\7\ The parent company of the Clearing Agencies is The
Depository Trust & Clearing Corporation (``DTCC''). DTCC operates on
a shared services model with respect to the Clearing Agencies and
its other subsidiaries. Most corporate functions are established and
managed on an enterprise-wide basis pursuant to intercompany
agreements under which it is generally DTCC that provides a relevant
service to a subsidiary, including the Clearing Agencies.
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The Boards have delegated to the General Counsel and the Deputy
General Counsels of the Clearing Agencies the authority to approve
certain proposed rule changes of the Clearing Agencies and the filings
with respect to such proposed rule changes required by Rule 19b-4 under
the Act.\8\ Specifically, the Boards have delegated to the General
Counsel and Deputy General Counsels of the Clearing Agencies authority
to approve (1) proposed rule changes that may be filed pursuant to
Section 19(b)(3)(A) of the Act,\9\ (2) proposed rule changes that
constitute clarifications, corrections or minor changes in the rules of
the Clearing Agencies but that will not be filed pursuant to Section
19(b)(3)(A) of the Act,\10\ in each case, other than any rule change
where the aggregate annual fees generated as a result of such rule
change are anticipated to be more than $1,000,000 at the time of the
filing, and (3) all proposed changes that are subject to an advance
notice as required by Rule 19b-4(n) under the Act \11\ but do not
constitute a change to the rules of Clearing Agencies.
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\8\ 17 CFR 240.19b-4.
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ Id.
\11\ 17 CFR 240.19b-4(n).
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Therefore, the statement within the ``Framework Ownership and
Change Management'' section of the Clearing Agency Frameworks that the
Boards or committees of the Board must approve changes to the Clearing
Agency Frameworks is inconsistent with these existing delegations of
approval authority. As such, the Clearing Agencies are proposing to
amend each of the Clearing Agency Frameworks to clarify that changes to
the Clearing Agency Frameworks may be approved by (1) the Boards, (2)
such Board committees as may be delegated authority by the Boards from
time to time pursuant to their charters, or (3), with respect to
certain changes, the General Counsel or Deputy General Counsels of the
Clearing Agencies, pursuant to authority delegated by the Boards and
with the advice and direction of the Framework owner.
The proposed change would make the Clearing Agency Frameworks
consistent with existing internal delegations of authority and would
also facilitate expedited review and approval of changes that may not
require the review and approval of the Boards or committees of the
Boards.
ii. Proposed Revision to the Identification of the Clearing Agency
Frameworks' Owners
The ``Framework Ownership and Change Management'' section in most
of the Clearing Agency Frameworks (with the exception of the Capital
Policy and the Capital Replenishment Plan) \12\ also identifies the
individual who owns and manages that Framework. Currently, each of the
Frameworks identifies the title of that individual. The Clearing
Agencies are proposing to revise each of the Clearing Agency Frameworks
to remove the title of that individual and instead provide that the
individual who owns and manages the Framework is an officer within the
applicable business group. The proposed change would permit the
Clearing Agencies to change the title of the individual who owns and
manages the Clearing Agency Frameworks, so long as that individual is
an officer of the Clearing Agencies.
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\12\ The Capital Policy and the Capital Replenishment Plan are
both owned by the DTCC Treasury Group. Therefore, the Clearing
Agencies are not proposing changes to these documents with respect
to their ownership.
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iii. Proposed Revisions to Stress Testing Framework
The Stress Testing Framework describes the procedures by which the
Clearing Agencies perform stress testing of each of their respective
total prefunded financial resources, exclusive of assessments for
additional contributions or other resources that are not prefunded that
may be available to the Clearing Agencies and is maintained by the
Clearing Agencies pursuant to Rule 17Ad-22(e)(4) under the Act.\13\ In
addition to the proposed changes discussed above, the Clearing Agencies
are proposing to make the following changes to the Stress Testing
Framework.
---------------------------------------------------------------------------
\13\ See supra note 5; 17 CFR 240.17Ad-22(e)(4).
---------------------------------------------------------------------------
First, the Clearing Agencies are proposing to enhance the
descriptions of certain matters within the Stress Testing Framework
that would clarify, but would not substantively change, those
statements. The proposed revisions would enhance the clarity of the
current description of the purpose of the Clearing Agencies' stress
testing methodologies and the description of the monthly review and
evaluation of the stress testing results and underlying parameters and
assumptions. The proposed changes would state that the monthly review
would include (1) analyses of model parameters, model assumptions, and
model performance; and (2) evaluation of the set of stress scenarios to
confirm their continued comprehensiveness and relevance.
Second, the Clearing Agencies are proposing to revise the Stress
Testing Framework to update the responsibilities of certain groups
within the DTCC Group Chief Risk Office (``GCRO''). For example, the
Clearing Agencies are proposing to revise the Stress Testing Framework
to reflect that, due to a recent reorganization within the GCRO,
certain tasks that were previously the responsibility of the Market
Analytics group were delegated to the Systemic Risk Office, including
the responsibility for designing macroeconomic scenarios that are used
in the development of hypothetical scenarios used in stress testing.
Additionally, the Clearing Agencies are separately proposing to revise
the Stress Testing Framework to clarify that certain responsibilities
of the Data and Portfolio Analytics group (``DPA'') require input from
other groups within the Quantitative Risk Management team (``QRM'') of
the GCRO by replacing ``DPA'' with ``QRM'' in the descriptions of these
responsibilities.
Finally, the Clearing Agencies are proposing to update the
descriptions of reverse stress testing analyses within the Stress
Testing Framework to reflect the current practice of performing these
analyses for each of the Clearing Agencies.\14\ Reverse stress testing
[[Page 53927]]
analyses are performed on at least a semi-annual basis and provide
another means for testing the sufficiency of the Clearing Agencies'
respective prefunded financial resources, in addition to the stress
testing that is performed by the Clearing Agencies pursuant to the
requirements of Rule 17Ad-22(e)(4) under the Act.\15\ The Stress
Testing Framework currently states that the reverse stress testing
analyses are performed for FICC and NSCC. Since the implementation of
the Stress Testing Framework, the Clearing Agencies have expanded these
analyses to cover DTC as well. Therefore, the Clearing Agencies are
proposing to update the Stress Testing Framework to reflect the current
practice of performing reverse stress testing analyses for each of the
Clearing Agencies.
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\14\ Reverse stress testing is a method for identifying events
that may cause a Clearing Agency to exhaust its prefunded financial
resources. Reverse stress testing could involve, for example,
assuming that a particular set of circumstances, or event, does
exhaust a Clearing Agency's prefunded financial resources, and then
determining the size of security price movements in those
circumstances.
\15\ 17 CFR 240.17Ad-22(e)(4).
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iv. Proposed Correction to Liquidity Risk Management Framework
The Liquidity Risk Management Framework sets forth the manner in
which each of the Clearing Agencies measures, monitors and manages the
liquidity risks that arise in or are borne by such Clearing Agency,
including (i) the manner in which each Clearing Agency deploys its
liquidity tools to meet its settlement obligations on an ongoing and
timely basis and (ii) each applicable Clearing Agency's use of intraday
liquidity, in accordance with applicable legal requirements. The
Liquidity Risk Management Framework assists the Clearing Agencies with
the requirements of Rule 17Ad-22(e)(7) under the Act.\16\
---------------------------------------------------------------------------
\16\ See supra note 5; 17 CFR 240.17Ad-22(e)(7).
---------------------------------------------------------------------------
In addition to the proposed changes discussed above, the Clearing
Agencies are proposing to correct an error in the examples of
assumptions that may be used in the Level 1 stress scenarios that are
used in the Clearing Agencies' daily liquidity analyses, as described
in the Initial Filing. Currently, the Liquidity Risk Management
Framework states that these assumptions may include the simultaneous
default, without prior warning, of all members of the affiliated family
with the largest settlement obligations. The proposed change would
remove ``without prior warning,'' which was included in error, as the
assumption that may be used for Level 1 stress scenarios would assume
some prior warning or expectation of this event.
2. Statutory Basis
The Clearing Agencies believe that the proposed changes are
consistent with Section 17A(b)(3)(F) of the Act, which requires, in
part, that the rules of a registered clearing agency be designed to
promote the prompt and accurate clearance and settlement of securities
transactions, and to assure the safeguarding of securities and funds
which are in the custody or control of the clearing agency or for which
it is responsible, for the reasons described below.\17\
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The proposed change to reflect the existing delegation of authority
to the General Counsel and Deputy General Counsels of the Clearing
Agencies to approve certain changes to the Clearing Agency Frameworks
would align the change management process applicable to the Frameworks
to existing governance and delegations of authority within the Clearing
Agencies. The proposed change would also permit an expedited review and
approval of changes that do not require action by the Boards or Board
committees. In this way, the proposed change would simplify the steps
necessary for the Clearing Agencies to make certain non-material
changes to the Clearing Agency Frameworks, subject to required
regulatory review and approval of such changes. The proposed change to
revise the identification of the individual who owns and manages
certain of the Clearing Agency Frameworks to an officer within the
relevant business unit would provide the Clearing Agencies with
flexibility to change that individual or the title of that individual,
while ensuring the owner has an appropriate level of authority.
The other proposed changes to the Stress Testing Framework and the
Liquidity Risk Management Framework would clarify and correct the
descriptions of certain matters, as described above. For example, the
proposed change to clarify in the Stress Testing Framework that reverse
stress testing may be performed for each of the Clearing Agencies would
update this Framework to reflect current practice and would correct the
existing statements that such analyses are only performed for FICC and
NSCC. By creating clearer descriptions, updating descriptions to
reflect current practice, and correcting errors, the Clearing Agencies
believe that the proposed changes would make these Frameworks more
effective in providing an overview of the important risk management
activities described therein.
As described in the Initial Filings, the risk management functions
described in the Clearing Agency Frameworks allow the Clearing Agencies
to continue the prompt and accurate clearance and settlement of
securities and can continue to assure the safeguarding of securities
and funds which are in their custody or control or for which they are
responsible notwithstanding the default of a member of an affiliated
family. The proposed changes to improve the clarity and accuracy of the
descriptions of these functions within the Clearing Agency Frameworks
would assist the Clearing Agencies in carrying out these risk
management functions. Therefore, the Clearing Agencies believe the
proposed changes are consistent with the requirements of Section
17A(b)(3)(F) of the Act.\18\
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\18\ Id.
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(B) Clearing Agencies' Statements on Burden on Competition
The Clearing Agencies do not believe that the proposed changes to
the Clearing Agency Frameworks described above would have any impact,
or impose any burden, on competition. As described above, the proposed
rule changes would improve the change management process applicable to
the Clearing Agency Frameworks, and would improve the clarity and
accuracy of the descriptions of certain matters within the Frameworks.
Therefore, the proposed changes are technical and non-material in
nature, relating mostly to the operation of the Clearing Agency
Frameworks rather than the risk management functions described therein.
Further, the Clearing Agencies do not believe that the proposed
change to update the Stress Testing Framework to state that reverse
stress testing may be performed for each of the Clearing Agencies would
have any impact, or impose any burden, on competition. The proposed
change would reflect the recent expansion of reverse stress testing to
cover DTC and, similar to the use of reverse stress testing with NSCC
and FICC, these analyses are applied consistently to all DTC
participants.
As such, the Clearing Agencies do not believe that the proposed
rule changes would have any impact on competition.
(C) Clearing Agencies' Statements on Comments on the Proposed Rule
Changes Received From Members, Participants, or Others
The Clearing Agencies have not solicited or received any written
comments relating to this proposal. The Clearing Agencies will notify
the
[[Page 53928]]
Commission of any written comments received by the Clearing Agencies.
III. Date of Effectiveness of the Proposed Rule Changes, and Timing for
Commission Action
Because the foregoing proposed rule changes do not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) impose any significant burden on competition; and
(iii) become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \19\ and
Rule 19b-4(f)(6) thereunder.\20\
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\19\ 15 U.S.C. 78s(b)(3)(A).
\20\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \21\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\22\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------
\21\ Id.
\22\ 17 CFR 240.19b-4(f)(6)(iii).
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The Clearing Agencies have asked the Commission to designate a
shorter time for the proposal to become operative. The Clearing
Agencies state that the proposed rule changes would allow the Clearing
Agencies to maintain clear and accurate internal procedures, and avoid
any errors in carrying out the important responsibilities described
therein. The Commission believes that allowing the Clearing Agencies to
maintain clear and accurate internal procedures and avoid potential
confusion in carrying out their responsibilities is consistent with the
protection of investors and the public interest given the important
role that the Clearing Agencies play in the financial markets.
Accordingly, the Commission waives the 30-day operative delay and
designates the proposed rule changes to be operative upon filing.\23\
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\23\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
changes, the Commission summarily may temporarily suspend such rule
changes if they appear 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.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
changes are 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 Numbers SR-DTC-2018-009, SR-FICC-2018-010, or SR-NSCC-2018-009 on
the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to File Numbers SR-DTC-2018-009, SR-FICC-
2018-010, or SR-NSCC-2018-009. 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 changes that are filed with the Commission, and all
written communications relating to the proposed rule changes 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 DTC and on DTCC's website (https://dtcc.com/legal/sec-rule-filings.aspx). 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 Numbers SR-
DTC-2018-009, SR-FICC-2018-010, or SR-NSCC-2018-009 and should be
submitted on or before November 15, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-23280 Filed 10-24-18; 8:45 am]
BILLING CODE 8011-01-P
