Self-Regulatory Organizations; LCH SA; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of the Onboarding Fee Waiver and Introduction of a Fee Rebate Scheme for CDSClear Index Swaptions Clearing Activities, 20178-20181 [2019-09372]
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20178
Federal Register / Vol. 84, No. 89 / Wednesday, May 8, 2019 / Notices
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–Phlx–2019–18 and should
be submitted on or before May 29, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–09374 Filed 5–7–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85763; File No. SR–LCH
SA–2019–002]
Self-Regulatory Organizations; LCH
SA; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Extension of
the Onboarding Fee Waiver and
Introduction of a Fee Rebate Scheme
for CDSClear Index Swaptions Clearing
Activities
May 2, 2019.
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 April 29,
2019, Banque Centrale de
Compensation, which conducts
business under the name LCH SA (‘‘LCH
SA’’), filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I, II and III below, which Items
have been prepared primarily by LCH
SA. LCH SA filed the proposal pursuant
to Section 19(b)(3)(A) of the Act,3 and
Rule 19b–4(f)(2) 4 thereunder, so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change, Security-Based Swap
Submission, or Advance Notice
The proposed rule change will extend
the onboarding fee waiver and introduce
a fee rebate scheme for CDSClear Index
Swaptions clearing activities to be
effective upon filing with the
Commission.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
LCH SA included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. LCH SA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change, Security-Based
Swap Submission, or Advance Notice
1. Purpose
As specified in the table below, the
current CDSClear Index Swaptions fee
grid includes an onboarding fee and
offers both General Members and Select
Members a choice between the
Introductory Tariff and the Unlimited
Tariff.
The purpose of the proposed rule
change is to:
(1) Extend the waiver period for the
onboarding fee for both General
Members and Select Members that
register to the CDSClear Index
Swaptions clearing service, and
(2) introduce a clearing fee rebate
applicable to the Index Swaptions
Unlimited Tariff for both General
Members and Select Members.
As a reminder, under the Unlimited
Tariff, Clearing Members pay a fixed
amount annually that covers all clearing
fees for their Index Swaptions House
activity for the activity of all the
Affiliates of their Clearing Member
group.
CURRENT LCH SA CDSCLEAR INDEX SWAPTIONS CLEARING SERVICE FEE GRID
General Member:
Introductory Tariff
Cover only one Clearing Member legal entity (no Affiliate coverage)
Clearing fees ................................................................
$15
Ö15
Ö150k
Ö600k
Floor on clearing fees ...................................................
Cap on clearing fees ....................................................
per million of Index Swaptions notional on U.S. Indices.*
per million of Index Swaptions notional on European Indices.
Per calendar year (no pro-rating).
Per calendar year (no pro-rating).
khammond on DSKBBV9HB2PROD with NOTICES
Unlimited Tariff
Cover all the Affiliates of a given Clearing Member group.
Cover all clearing fees for Index Swaptions House activity for both iTraxx and CDX.NA underlying index families.
Ö375k
Ö30k
Fixed fee (annual) ........................................................
Onboarding Fees (both Introductory Tariff & Unlimited
Tariff).
16 17
2 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
3 15
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U.S.C. 78s(b)(3)(A).
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Per calendar year (no pro-rating).
One-off fee per Clearing Member legal entity under the Introductory Tariff or per Clearing Member group under the Unlimited Tariff waived until 31–Mar–19.
4 17
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CFR 240.19b–4(f)(2).
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Federal Register / Vol. 84, No. 89 / Wednesday, May 8, 2019 / Notices
20179
CURRENT LCH SA CDSCLEAR INDEX SWAPTIONS CLEARING SERVICE FEE GRID—Continued
Select Member:
Introductory Tariff
Cover only one Clearing Member legal entity (no Affiliate coverage)
Clearing fees ................................................................
$18
Ö18
Ö600k
Cap on Clearing fees ...................................................
per million of Index Swaptions notional on U.S. Indices.*
per million of Index Swaptions notional on European Indices.
Per calendar year (no pro-rating).
Unlimited Tariff
Cover all Affiliates of a given Clearing Member group.
Cover all clearing fees for Index Swaptions House activity for both iTraxx and CDX.NA underlying index families.
Fixed fee (annual) ........................................................
Onboarding Fees (both Introductory Tariff & Unlimited
Tariff).
Ö400k
Ö30k
Clearing fees ................................................................
$20
Ö20
Per calendar year (no pro-rating).
One-off fee per Clearing Member legal entity under the Introductory Tariff or per Clearing Member group under the Unlimited Tariff waived until 31–Mar–19.
Client:
In order to incentivize the Clearing
Members to build liquidity in the
CDSClear Index Swaptions clearing
service, LCH SA has decided to make
the following changes to its Index
Swaptions fee grid:
(1) Extend the waiver period for the
onboarding fee from 31 March 2019 to
20 December 2019 for both General
Members and Select Members that
per million of Index Swaptions notional on U.S. Indices.
per million of Index Swaptions notional on European Indices.
register to the CDSClear Index
Swaptions clearing service, and
(2) implement a fee rebate scheme,
applicable to the Unlimited Tariff for
both General Members and Select
Members, in which discounts to the
fixed fee will apply depending on the
Index Swaptions notional cleared by
each Clearing Member group as detailed
hereinafter.
The fee rebate scheme will be valid
for 2019 only and apply equally to all
Clearing Members that register to the
CDSClear Index Swaptions clearing
service.
In order to determine the relevant
discount rate to apply, LCH SA will
consider the total Index Swaptions
notional cleared in 2019 starting from
the date on which the fee rebate is
deemed effective in accordance with
any relevant regulatory review and
approval process.
REVISED LCH SA CDSCLEAR INDEX SWAPTIONS CLEARING SERVICE FEE GRID
Index Swaptions clearing service fee rebate scheme *
General Member:
Unlimited Tariff
Fixed fee (annual) ........................................................
Discounted Rates .........................................................
Ö375k
Ö50k
Ö75k
Ö125k
Select Member:
Unlimited Tariff
Fixed fee (annual) ........................................................
Discounted Rates .........................................................
Ö400k
Ö50k
Ö75k
khammond on DSKBBV9HB2PROD with NOTICES
Ö125k
Per calendar year.
After discount rate of 86.67% applied to the Fixed fee amount
if Index Swaptions notional cleared per Clearing Member
group strictly above Ö12 billion.
After discount rate of 80.00% applied to the Fixed fee amount
if Index Swaptions notional cleared per Clearing Member
group strictly above Ö6 billion but equal or below Ö12 billion.
After discount rate of 67.00% applied to the Fixed fee amount
if Index Swaptions notional cleared per Clearing Member
group strictly above Ö0 but equal or below Ö6 billion.
Per calendar year.
After discount rate of 87.50% applied to the Fixed fee amount
if Index Swaptions notional cleared per Clearing Member
group strictly above Ö12 billion.
After discount rate of 81.25% applied to the Fixed fee amount
if Index Swaptions notional cleared per Clearing Member
group strictly above Ö6 billion but equal or below Ö12 billion.
After discount rate of 68.75% applied to the Fixed fee amount
if Index Swaptions notional cleared per Clearing Member
group per year strictly above Ö0 but equal or below Ö6 billion.
Cumulative conditions for the Fee rebate:
(i) application to the Unlimited Tariff only;
(ii) application to all Clearing Members registering to the Index Swaptions clearing service (registration letter or application file signature date);
(iii) Valid for 2019 only; and
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Federal Register / Vol. 84, No. 89 / Wednesday, May 8, 2019 / Notices
REVISED LCH SA CDSCLEAR INDEX SWAPTIONS CLEARING SERVICE FEE GRID—Continued
(iv) Index Swaptions notional cleared for the determination of the discount rate to be observed from the regulatory effective date of the
rebate.
Ö30k
Onboarding fee (for both General Members and Select Members).
One-off fee per Clearing Member group waived until 20 December 2019 under the Unlimited Tariff.
* Subject to regulatory review/approval process.
2. Statutory Basis
Section 17A(b)(3)(D) of the Act
requires that the rules of a clearing
agency provide for the equitable
allocation of reasonable dues, fees, and
other charges.5
LCH SA has determined that the
proposed fees are reasonable and
appropriate to offer and grow CDSClear
Index Swaptions clearing services.
Regarding the CDClear Index
Swaptions service, LCH SA has already
rule filed with the SEC the relevant fee
grid and believes that the proposed
discounts for CDSClear Index Swaptions
clearing activities have been set up at an
appropriate level given the costs,
expenses and revenues to be generated
to LCH SA in providing such services.
All clearing members will have the
same opportunity to equally benefit
from the proposed incentive rebate
according to the specified conditions.
LCH SA believes that proposing such
clearing fees and rebate are consistent
with the requirements of Section 17A of
the Act 6 and the regulations thereunder
applicable to it, and in particular
provides for the equitable allocation of
reasonable fees, dues, and other charges
among Clearing Members and market
participants by ensuring that Clearing
Members pay reasonable fees and dues
for the services provided by LCH SA,
within the meaning of Section
17A(b)(3)(D) of the Act.
khammond on DSKBBV9HB2PROD with NOTICES
B. Clearing Agency’s Statement on
Burden on Competition
Section 17A(b)(3)(I) of the Act
requires that the rules of a clearing
agency not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act.7 LCH SA does not
believe that the proposed rule change
would impose any burden on
competition.
As noted above, LCH SA believes that
the fees amount and related discounts
have been set up at an appropriate level
given the costs and expenses to LCH SA
in offering and maintaining the relevant
CDSClear Index Swaptions clearing
services.
U.S.C. 78q–1(b)(3)(D).
U.S.C. 78q–1.
7 15 U.S.C. 78q–1(b)(3)(I).
Additionally, the fee waiver and
rebate will apply equally to all
CDSClear Clearing Members and their
Affiliates.
Further, LCH SA does not believe that
the proposed rule change would have a
burden on competition because it does
not adversely affect the ability of such
Clearing Members or other market
participants generally to engage in
cleared transactions or to access clearing
services as the clearing of Index
Swaptions remains not mandatory.
C. Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed rule change have not been
solicited or received. LCH SA will
notify the Commission of any written
comments received by LCH SA.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A) 8 of the
Act and Rule 19b–4(f)(2) 9 thereunder
because it establishes a fee or other
charge imposed by LCH SA on its
Clearing Members. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such proposed rule
change if it appears to the Commission
that such action is necessary or
appropriate in the public interest, for
the protection of investors, or otherwise
in furtherance of the purposes of the
Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
LCH SA–2019–002 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–LCH SA–2019–002. 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 LCH SA and on LCH SA’s
website at https://www.lch.com/
resources/rules-and-regulations/
proposed-rule-changes-0. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–LCH SA–2019–002 and
should be submitted on or before May
29, 2019.
5 15
6 15
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CFR 240.19b–4(f)(2).
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CFR 200.30–3(a)(12).
08MYN1
Federal Register / Vol. 84, No. 89 / Wednesday, May 8, 2019 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–09372 Filed 5–7–19; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 10749]
30-Day Notice of Proposed Information
Collection: Complaint of
Discrimination
Notice of request for public
comment and submission to OMB of
proposed collection of information.
ACTION:
The Department of State has
submitted the information collection
described below to the Office of
Management and Budget (OMB) for
approval. In accordance with the
Paperwork Reduction Act of 1995 we
are requesting comments on this
collection from all interested
individuals and organizations. The
purpose of this Notice is to allow 30
days for public comment.
DATES: Submit comments directly to the
Office of Management and Budget
(OMB) up to June 7, 2019.
ADDRESSES: Direct comments to the
Department of State Desk Officer in the
Office of Information and Regulatory
Affairs at the Office of Management and
Budget (OMB). You may submit
comments by the following methods:
• Email: oira_submission@
omb.eop.gov. You must include the DS
form number, information collection
title, and the OMB control number in
the subject line of your message.
• Fax: 202–395–5806. Attention: Desk
Officer for Department of State. You
must include the information collection
title (Request for Commodity
Jurisdiction Determination), form
number (DS–4282), and the OMB
control number (1405–0220) in all
correspondence.
SUMMARY:
khammond on DSKBBV9HB2PROD with NOTICES
FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information regarding the collection
listed in this notice, including requests
for copies of the proposed collection
instrument and supporting documents,
to Alice Kottmyer, who may be reached
at kottmyeram@state.gov, 202–647–
2318.
SUPPLEMENTARY INFORMATION:
• Title of Information Collection:
Complaint of Discrimination Under
Section 504, Section 508 or Title VI.
• OMB Control Number: 1405–0220.
VerDate Sep<11>2014
16:57 May 07, 2019
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• Type of Request: Revision of a
Currently Approved Collection.
• Originating Office: Office of Civil
Rights, S/OCR.
• Form Number: DS–4282.
• Respondents: This information
collection is used by any Federal
employee or member of the public who
wishes to submit a complaint of
discrimination under Title VI of the
Civil Rights Act of 1964 (42 U.S.C.
2000d); or Sections 504 or 508 of the
Rehabilitation Act of 1973 (29 U.S.C.
794 and 794d).
• Estimated Number of Respondents:
10.
• Estimated Number of Responses:
10.
• Average Time Per Response: 1
Hour.
• Total Estimated Burden Time: 10
Hours.
• Frequency: On occasion.
• Obligation to Respond: Voluntary.
We are soliciting public comments to
permit the Department to:
• Evaluate whether the proposed
information collection is necessary for
the proper functions of the Department.
• Evaluate the accuracy of our
estimate of the time and cost burden for
this proposed collection, including the
validity of the methodology and
assumptions used.
• Enhance the quality, utility, and
clarity of the information to be
collected.
• Minimize the reporting burden on
those who are to respond, including the
use of automated collection techniques
or other forms of information
technology.
Please note that comments submitted
in response to this Notice are public
record. Before including any detailed
personal information, you should be
aware that your comments as submitted,
including your personal information,
will be available for public review.
Abstract of Proposed Collection
The form created by this information
collection (DS–4282) will be used to
present complaints of discrimination
under Title VI of the Civil Rights Act of
1964; or Sections 504 or 508 of the
Rehabilitation Act of 1973 (29 U.S.C.
794 and 794d).
Methodology
The form can be downloaded from
https://eforms.state.gov/Forms/
ds4282.PDF. After completion, the form
may be submitted by email, mail, fax, or
hand-delivery.
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20181
Dated: April 26, 2019.
Gregory B. Smith,
Director.
[FR Doc. 2019–09462 Filed 5–7–19; 8:45 am]
BILLING CODE 4710–25–P
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
Limitation on Claims Against Proposed
Public Transportation Projects
Federal Transit Administration
(FTA), DOT.
ACTION: Notice.
AGENCY:
This notice announces final
environmental actions taken by the
Federal Transit Administration (FTA)
for projects in Spokane, Washington,
and Portland and Gresham, Oregon. The
purpose of this notice is to announce
publicly the environmental decisions by
FTA on the subject projects and to
activate the limitation on any claims
that may challenge these final
environmental actions.
DATES: By this notice, FTA is advising
the public of final agency actions
subject to 23 U.S.C. 139(l). A claim
seeking judicial review of FTA actions
announced herein for the listed public
transportation projects will be barred
unless the claim is filed on or before
October 7, 2019.
FOR FURTHER INFORMATION CONTACT:
Nancy-Ellen Zusman, Assistant Chief
Counsel, Office of Chief Counsel, (312)
353–2577 or Juliet Bochicchio,
Environmental Protection Specialist,
Office of Environmental Programs, (202)
366–9348. FTA is located at 1200 New
Jersey Avenue SE, Washington, DC
20590. Office hours are from 9:00 a.m.
to 5:00 p.m., Monday through Friday,
except Federal holidays.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that FTA has taken final
agency actions by issuing certain
approvals for the public transportation
projects listed below. The actions on the
projects, as well as the laws under
which such actions were taken, are
described in the documentation issued
in connection with the projects to
comply with the National
Environmental Policy Act (NEPA) and
in other documents in the FTA
environmental project file for the
projects. Interested parties may contact
either the project sponsor or the relevant
FTA Regional Office for more
information. Contact information for
FTA’s Regional Offices may be found at
https://www.fta.dot.gov.
This notice applies to all FTA
decisions on the listed projects as of the
SUMMARY:
E:\FR\FM\08MYN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 89 (Wednesday, May 8, 2019)]
[Notices]
[Pages 20178-20181]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09372]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85763; File No. SR-LCH SA-2019-002]
Self-Regulatory Organizations; LCH SA; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Relating to the
Extension of the Onboarding Fee Waiver and Introduction of a Fee Rebate
Scheme for CDSClear Index Swaptions Clearing Activities
May 2, 2019.
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 April 29, 2019, Banque Centrale de Compensation, which conducts
business under the name LCH SA (``LCH SA''), filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change
described in Items I, II and III below, which Items have been prepared
primarily by LCH SA. LCH SA filed the proposal pursuant to Section
19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(2) \4\ thereunder, so that
the proposal was effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice
The proposed rule change will extend the onboarding fee waiver and
introduce a fee rebate scheme for CDSClear Index Swaptions clearing
activities to be effective upon filing with the Commission.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, LCH SA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. LCH SA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change, Security-Based Swap Submission, or
Advance Notice
1. Purpose
As specified in the table below, the current CDSClear Index
Swaptions fee grid includes an onboarding fee and offers both General
Members and Select Members a choice between the Introductory Tariff and
the Unlimited Tariff.
The purpose of the proposed rule change is to:
(1) Extend the waiver period for the onboarding fee for both
General Members and Select Members that register to the CDSClear Index
Swaptions clearing service, and
(2) introduce a clearing fee rebate applicable to the Index
Swaptions Unlimited Tariff for both General Members and Select Members.
As a reminder, under the Unlimited Tariff, Clearing Members pay a
fixed amount annually that covers all clearing fees for their Index
Swaptions House activity for the activity of all the Affiliates of
their Clearing Member group.
Current LCH SA CDSClear Index Swaptions Clearing Service Fee Grid
------------------------------------------------------------------------
------------------------------------------------------------------------
General Member:.........................................................
Introductory Tariff.................................................
Cover only one Clearing Member legal entity (no Affiliate coverage).
------------------------------------------------------------------------
Clearing fees.............. $15 per million of Index
Swaptions notional on
U.S. Indices.*
[euro]15 per million of Index
Swaptions notional on
European Indices.
Floor on clearing fees..... [euro]150k Per calendar year (no
pro-rating).
Cap on clearing fees....... [euro]600k Per calendar year (no
pro-rating).
------------------------------------------------------------------------
Unlimited Tariff....................................................
Cover all the Affiliates of a given Clearing Member group...........
Cover all clearing fees for Index Swaptions House activity for both
iTraxx and CDX.NA underlying index families..
------------------------------------------------------------------------
Fixed fee (annual)......... [euro]375k Per calendar year (no
pro-rating).
Onboarding Fees (both [euro]30k One-off fee per
Introductory Tariff & Clearing Member legal
Unlimited Tariff). entity under the
Introductory Tariff or
per Clearing Member
group under the
Unlimited Tariff
waived until 31-Mar-
19.
------------------------------------------------------------------------
[[Page 20179]]
Select Member:..........................................................
Introductory Tariff.................................................
Cover only one Clearing Member legal entity (no Affiliate coverage).
------------------------------------------------------------------------
Clearing fees.............. $18 per million of Index
Swaptions notional on
U.S. Indices.*
[euro]18 per million of Index
Swaptions notional on
European Indices.
Cap on Clearing fees....... [euro]600k Per calendar year (no
pro-rating).
------------------------------------------------------------------------
Unlimited Tariff....................................................
Cover all Affiliates of a given Clearing Member group...............
Cover all clearing fees for Index Swaptions House activity for both
iTraxx and CDX.NA underlying index families..
------------------------------------------------------------------------
Fixed fee (annual)......... [euro]400k Per calendar year (no
pro-rating).
Onboarding Fees (both [euro]30k One-off fee per
Introductory Tariff & Clearing Member legal
Unlimited Tariff). entity under the
Introductory Tariff or
per Clearing Member
group under the
Unlimited Tariff
waived until 31-Mar-
19.
Client:
Clearing fees.............. $20 per million of Index
Swaptions notional on
U.S. Indices.
[euro]20 per million of Index
Swaptions notional on
European Indices.
------------------------------------------------------------------------
In order to incentivize the Clearing Members to build liquidity in
the CDSClear Index Swaptions clearing service, LCH SA has decided to
make the following changes to its Index Swaptions fee grid:
(1) Extend the waiver period for the onboarding fee from 31 March
2019 to 20 December 2019 for both General Members and Select Members
that register to the CDSClear Index Swaptions clearing service, and
(2) implement a fee rebate scheme, applicable to the Unlimited
Tariff for both General Members and Select Members, in which discounts
to the fixed fee will apply depending on the Index Swaptions notional
cleared by each Clearing Member group as detailed hereinafter.
The fee rebate scheme will be valid for 2019 only and apply equally
to all Clearing Members that register to the CDSClear Index Swaptions
clearing service.
In order to determine the relevant discount rate to apply, LCH SA
will consider the total Index Swaptions notional cleared in 2019
starting from the date on which the fee rebate is deemed effective in
accordance with any relevant regulatory review and approval process.
Revised LCH SA CDSClear Index Swaptions Clearing Service Fee Grid
------------------------------------------------------------------------
------------------------------------------------------------------------
Index Swaptions clearing service fee rebate scheme *
------------------------------------------------------------------------
General Member:
Unlimited Tariff
Fixed fee (annual)......... [euro]375k Per calendar year.
Discounted Rates........... [euro]50k After discount rate of
86.67% applied to the
Fixed fee amount if
Index Swaptions
notional cleared per
Clearing Member group
strictly above
[euro]12 billion.
[euro]75k After discount rate of
80.00% applied to the
Fixed fee amount if
Index Swaptions
notional cleared per
Clearing Member group
strictly above [euro]6
billion but equal or
below [euro]12
billion.
[euro]125k After discount rate of
67.00% applied to the
Fixed fee amount if
Index Swaptions
notional cleared per
Clearing Member group
strictly above [euro]0
but equal or below
[euro]6 billion.
------------------------------------------------------------------------
Select Member:
Unlimited Tariff
Fixed fee (annual)......... [euro]400k Per calendar year.
Discounted Rates........... [euro]50k After discount rate of
87.50% applied to the
Fixed fee amount if
Index Swaptions
notional cleared per
Clearing Member group
strictly above
[euro]12 billion.
[euro]75k After discount rate of
81.25% applied to the
Fixed fee amount if
Index Swaptions
notional cleared per
Clearing Member group
strictly above [euro]6
billion but equal or
below [euro]12
billion.
[euro]125k After discount rate of
68.75% applied to the
Fixed fee amount if
Index Swaptions
notional cleared per
Clearing Member group
per year strictly
above [euro]0 but
equal or below [euro]6
billion.
------------------------------------------------------------------------
Cumulative conditions for the Fee rebate:
(i) application to the Unlimited Tariff only;.......................
(ii) application to all Clearing Members registering to the Index
Swaptions clearing service (registration letter or application file
signature date);.
(iii) Valid for 2019 only; and......................................
[[Page 20180]]
(iv) Index Swaptions notional cleared for the determination of the
discount rate to be observed from the regulatory effective date of
the rebate..
------------------------------------------------------------------------
Onboarding fee (for both [euro]30k One-off fee per
General Members and Select Clearing Member group
Members). waived until 20
December 2019 under
the Unlimited Tariff.
------------------------------------------------------------------------
* Subject to regulatory review/approval process.
2. Statutory Basis
Section 17A(b)(3)(D) of the Act requires that the rules of a
clearing agency provide for the equitable allocation of reasonable
dues, fees, and other charges.\5\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
LCH SA has determined that the proposed fees are reasonable and
appropriate to offer and grow CDSClear Index Swaptions clearing
services.
Regarding the CDClear Index Swaptions service, LCH SA has already
rule filed with the SEC the relevant fee grid and believes that the
proposed discounts for CDSClear Index Swaptions clearing activities
have been set up at an appropriate level given the costs, expenses and
revenues to be generated to LCH SA in providing such services.
All clearing members will have the same opportunity to equally
benefit from the proposed incentive rebate according to the specified
conditions.
LCH SA believes that proposing such clearing fees and rebate are
consistent with the requirements of Section 17A of the Act \6\ and the
regulations thereunder applicable to it, and in particular provides for
the equitable allocation of reasonable fees, dues, and other charges
among Clearing Members and market participants by ensuring that
Clearing Members pay reasonable fees and dues for the services provided
by LCH SA, within the meaning of Section 17A(b)(3)(D) of the Act.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
B. Clearing Agency's Statement on Burden on Competition
Section 17A(b)(3)(I) of the Act requires that the rules of a
clearing agency not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.\7\ LCH SA does
not believe that the proposed rule change would impose any burden on
competition.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------
As noted above, LCH SA believes that the fees amount and related
discounts have been set up at an appropriate level given the costs and
expenses to LCH SA in offering and maintaining the relevant CDSClear
Index Swaptions clearing services.
Additionally, the fee waiver and rebate will apply equally to all
CDSClear Clearing Members and their Affiliates.
Further, LCH SA does not believe that the proposed rule change
would have a burden on competition because it does not adversely affect
the ability of such Clearing Members or other market participants
generally to engage in cleared transactions or to access clearing
services as the clearing of Index Swaptions remains not mandatory.
C. Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others
Written comments relating to the proposed rule change have not been
solicited or received. LCH SA will notify the Commission of any written
comments received by LCH SA.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(2) \9\
thereunder because it establishes a fee or other charge imposed by LCH
SA on its Clearing Members. At any time within 60 days of the filing of
the proposed rule change, the Commission summarily may temporarily
suspend such proposed rule change if it appears to the Commission that
such action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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:
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-LCH SA-2019-002 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-LCH SA-2019-002. 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 LCH SA and on LCH SA's website
at https://www.lch.com/resources/rules-and-regulations/proposed-rule-changes-0. All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-LCH SA-2019-002 and should
be submitted on or before May 29, 2019.
[[Page 20181]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-09372 Filed 5-7-19; 8:45 am]
BILLING CODE 8011-01-P
