Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Designation of Longer Period for Commission Action on a Proposed Rule Change To Introduce a Liquidity Provider Protection on EDGA, 39385-39386 [2019-17046]

Download as PDF Federal Register / Vol. 84, No. 154 / Friday, August 9, 2019 / Notices are available at www.prc.gov, Docket Nos. MC2019–181, CP2019–203. POSTAL SERVICE Product Change—Priority Mail and First-Class Package Service Negotiated Service Agreement Sean Robinson, Attorney, Corporate and Postal Business Law. [FR Doc. 2019–17073 Filed 8–8–19; 8:45 am] AGENCY: ACTION: Postal ServiceTM. BILLING CODE 7710–12–P Notice. The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule’s Competitive Products List. SUMMARY: POSTAL SERVICE Product Change—Priority Mail Negotiated Service Agreement Postal ServiceTM. ACTION: Notice. AGENCY: BILLING CODE 7710–12–P The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule’s Competitive Products List. DATES: Date of required notice: August 9, 2019. FOR FURTHER INFORMATION CONTACT: Sean Robinson, 202–268–8405. SUPPLEMENTARY INFORMATION: The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on August 6, 2019, it filed with the Postal Regulatory Commission a USPS Request to Add Priority Mail Contract 546 to Competitive Product List. Documents are available at www.prc.gov, Docket Nos. MC2019–182, CP2019–204. POSTAL SERVICE Sean Robinson, Attorney, Corporate and Postal Business Law. Date of required notice: August 9, 2019. DATES: FOR FURTHER INFORMATION CONTACT: Sean Robinson, 202–268–8405. The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on August 6, 2019, it filed with the Postal Regulatory Commission a USPS Request to Add Priority Mail & First-Class Package Service Contract 112 to Competitive Product List. Documents are available at www.prc.gov, Docket Nos. MC2019–184, CP2019–206. SUPPLEMENTARY INFORMATION: Sean Robinson, Attorney, Corporate and Postal Business Law. [FR Doc. 2019–17076 Filed 8–8–19; 8:45 am] SUMMARY: [FR Doc. 2019–17074 Filed 8–8–19; 8:45 am] Product Change—Priority Mail Negotiated Service Agreement AGENCY: ACTION: BILLING CODE 7710–12–P Postal ServiceTM. SECURITIES AND EXCHANGE COMMISSION Notice. The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule’s Competitive Products List. SUMMARY: Date of required notice: August 9, 2019. DATES: FOR FURTHER INFORMATION CONTACT: khammond on DSKBBV9HB2PROD with NOTICES Sean Robinson, 202–268–8405. The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on August 6, 2019, it filed with the Postal Regulatory Commission a USPS Request to Add Priority Mail Contract 545 to Competitive Product List. Documents SUPPLEMENTARY INFORMATION: VerDate Sep<11>2014 16:34 Aug 08, 2019 Jkt 247001 [Release No. 34–86567; File No. SR– CboeEDGA–2019–012] Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Designation of Longer Period for Commission Action on a Proposed Rule Change To Introduce a Liquidity Provider Protection on EDGA August 5, 2019. On June 7, 2019, Cboe EDGA Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposal to introduce a delay 1 15 2 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00127 Fmt 4703 Sfmt 4703 39385 mechanism on EDGA. The proposed rule change was published for comment in the Federal Register on June 26, 2019.3 The Commission has received fourteen comments on the proposed rule change.4 Section 19(b)(2) of the Act 5 provides that, within 45 days of the publication of the notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The 45th day after publication of the notice for this proposed rule change is August 10, 2019. The Commission is extending the 45day time period for Commission action on the proposed rule change. The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change. Accordingly, pursuant to Section 19(b)(2) of the Act,6 the Commission designates September 24, 2019 as the date by which the Commission shall either approve, disapprove, or institute proceedings to determine whether to 3 See Securities Exchange Act Release No. 86168 (June 20, 2019), 84 FR 30282. 4 See Letters from R.T. Leuchtkafer, dated July 12, 2019; Steve Crutchfield, Head of Market Structure, CTC Trading Group, LLC, dated July 15, 2019; Tyler Gellasch, Executive Director, Healthy Markets, dated July 16, 2019; Larry Tabb, Founder and Research Chairman, TABB Group, dated July 16, 2019; Stephen John Berger, Managing Director, Global Head of Government and Regulatory Policy, Citadel Securities, dated July 16, 2019; Mehmet Kinak, Vice President & Global Head of Systematic Trading & Market Structure, and Jonathan D. Siegel, Vice President & Senior Legal Counsel (Legislative & Regulatory Affairs), T. Rowe Price, dated July 16, 2019; Adam Nunes, Head of Business Development, Hudson River Trading LLC, dated July 16, 2019; Joanna Mallers, Secretary, FIA Principal Traders Group, dated July 16, 2019; Ray Ross, Chief Technology Officer, Clearpool, dated July 16, 2019; Eric Swanson, CEO, XTX Markets LLC (Americas), dated July 16, 2019; John Thornton, Co-Chair, Hal S. Scott, President, and R. Glenn Hubbard, CoChair, Committee on Capital Markets Regulation, dated July 16, 2019; Kirsten Wegner, Chief Executive Officer, Modern Markets Initiative, dated July 17, 2019; Theodore R. Lazo, Managing Director and Associate General Counsel, SIFMA, dated July 18, 2019; Eric Swanson, CEO, XTX Markets LLC (Americas), dated July 31, 2019, available at https:// www.sec.gov/comments/sr-cboeedga-2019-012/ srcboeedga2019012.htm. 5 15 U.S.C. 78s(b)(2). 6 15 U.S.C. 78s(b)(2)(A)(ii)(I). E:\FR\FM\09AUN1.SGM 09AUN1 39386 Federal Register / Vol. 84, No. 154 / Friday, August 9, 2019 / Notices disapprove, the proposed rule change (File No. SR–CboeEDGA–2019–012). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Jill M. Peterson, Assistant Secretary. [FR Doc. 2019–17046 Filed 8–8–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–86576; File No. SR–LCH SA–2019–005] Self-Regulatory Organizations; LCH SA; Notice of Filing of Proposed Rule Change Relating to Introduction of Clearing of the New Markit iTraxx Subordinated Financials Index CDS and the Related Single Name CDS Constituents and Enhancements to Wrong Way Risk Margin August 6, 2019. khammond 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 August 2, 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. 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 Banque Centrale de Compensation, which conducts business under the name LCH SA (‘‘LCH SA’’), is proposing to amend its (i) Reference Guide: CDSClear Margin Framework and (ii) CDSClear Default Fund Methodology (together the ‘‘CDSClear Risk Methodology’’) and (iii) CDS Clearing Supplement (‘‘Supplement’’) and (iv) CDS Clearing Procedures (‘‘Procedures’’) to incorporate new terms and to make conforming, clarifying and changes [sic] to allow clearing of the new Markit iTraxx Subordinated Financials Index CDS and the related single name CDS constituents. LCH SA is also amending its CDSClear Margin Framework to incorporate changes to the Wrong Way 7 17 CFR 200.30–3(a)(31). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 16:34 Aug 08, 2019 II. Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, LCH SA included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. LCH SA has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of these statements. A. Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose LCH SA is proposing to introduce clearing of the Markit iTraxx Subordinated Financials Index CDS and the related single name CDS constituents (‘‘SubFins’’) which is the natural next step following the recent changes in financial entities’ issuance patterns that are being rolled out in the wider industry. In August 2016, IHSMarkit initiated the Markit iTraxx Europe rule review which prescribes how bank entities are included in the Markit iTraxx Europe Indices. At the time, the iTraxx Europe Index Advisory Committee identified that three differing regulatory approaches to TLAC/MREL regulations (Total Loss Absorbing Capacity/ Minimum Requirements and Eligible Liabilities) eligible debt were driving new bank debt issuance patterns: • Structural Subordination Æ Operating Company versus Holding Company (referred to as OpCoHoldCo) • Contractual Subordination Æ Senior Non-Preferred Tier 3 Bonds, adopted by Danish, French and Spanish banks, (Seniority tier is SNRLAC: Senior Loss Absorbing Capacity) • Statutory Subordination Æ All senior unsecured debt made eligible, adopted by German banks Structural subordination was introduced in September 2017 and Contractual subordination in March 2018. As a result of these different approaches, LCH SA now manages 3 All capitalized terms not defined herein have the same definition as the Rule Book, Supplement or Procedures, as applicable. 1 15 VerDate Sep<11>2014 Risk margin in order to address some recommendations in respect of the risk model validation. The text of the proposed rule change has been annexed as Exhibit 5.3 Jkt 247001 PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 different levels of debt seniorities in its product scope and risk framework. The proposed change will naturally extend the product scope eligible for clearing by completing the set of seniority with subordinated debt for financial entities. For the purpose of introducing clearing of SubFins, LCH SA proposes to modify its CDS Clearing Supplement and Procedures to include the relevant language to allow the clearing of the SubFins. LCH SA is also taking this opportunity to introduce a few changes to the Wrong Way Risk (‘‘WWR’’) margin in order to address some of the open model validation recommendations meant to improve the stability of the WWR margin and to include positions on the iTraxx Main index in the scope of products subject to the WWR margin. Finally, a clarification to the Default Fund Additional Margin (‘‘DFAM’’), independent from the SubFins initiative, is also added to the CDSClear Default Fund Methodology to reflect an adjustment requested by LCH SA’s Risk Department for any clearing service in order to cap the DFAM to the Stress Test Loss Over Additional Margin (‘‘STLOAM’’). (1) CDSClear Risk Methodology The introduction of CDS with subordinated debt as an underlier is akin to introducing Senior Non Preferred debt, therefore the same margins need to be adapted, namely spread margin, wrong way risk, liquidity charge and jump-to-default risk margins (Short Charge and SelfReferencing Margin). The Senior Non Preferred CDS differ from Subordinated financial CDS with respect to the availability of the historical market data and the recovery rate which for Subordinated debt is conventionally 20% (versus 40% for Senior debt). The spread margin will use the historical data available for SubFins, and consider Subordinated and Senior debt as different financial instruments with regards to portfolio margining.4 Similarly, the WWR margin is extended to cover SubFins in addition to Senior CDS, as if they were different names from an offset perspective, and with shocks defined specifically for SubFins calibrated from the historical data available. The Liquidity Charge will consider Markit iTraxx Subordinated Financials index to be a new hedging instrument, 4 See Article 27 of Commission Delegated Regulation (EU) No 153/2013). E:\FR\FM\09AUN1.SGM 09AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 84, Number 154 (Friday, August 9, 2019)]
[Notices]
[Pages 39385-39386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17046]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86567; File No. SR-CboeEDGA-2019-012]


Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice 
of Designation of Longer Period for Commission Action on a Proposed 
Rule Change To Introduce a Liquidity Provider Protection on EDGA

August 5, 2019.
    On June 7, 2019, Cboe EDGA Exchange, Inc. (the ``Exchange'' or 
``EDGA'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposal to introduce a delay mechanism on EDGA. The proposed rule 
change was published for comment in the Federal Register on June 26, 
2019.\3\ The Commission has received fourteen comments on the proposed 
rule change.\4\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 86168 (June 20, 
2019), 84 FR 30282.
    \4\ See Letters from R.T. Leuchtkafer, dated July 12, 2019; 
Steve Crutchfield, Head of Market Structure, CTC Trading Group, LLC, 
dated July 15, 2019; Tyler Gellasch, Executive Director, Healthy 
Markets, dated July 16, 2019; Larry Tabb, Founder and Research 
Chairman, TABB Group, dated July 16, 2019; Stephen John Berger, 
Managing Director, Global Head of Government and Regulatory Policy, 
Citadel Securities, dated July 16, 2019; Mehmet Kinak, Vice 
President & Global Head of Systematic Trading & Market Structure, 
and Jonathan D. Siegel, Vice President & Senior Legal Counsel 
(Legislative & Regulatory Affairs), T. Rowe Price, dated July 16, 
2019; Adam Nunes, Head of Business Development, Hudson River Trading 
LLC, dated July 16, 2019; Joanna Mallers, Secretary, FIA Principal 
Traders Group, dated July 16, 2019; Ray Ross, Chief Technology 
Officer, Clearpool, dated July 16, 2019; Eric Swanson, CEO, XTX 
Markets LLC (Americas), dated July 16, 2019; John Thornton, Co-
Chair, Hal S. Scott, President, and R. Glenn Hubbard, Co-Chair, 
Committee on Capital Markets Regulation, dated July 16, 2019; 
Kirsten Wegner, Chief Executive Officer, Modern Markets Initiative, 
dated July 17, 2019; Theodore R. Lazo, Managing Director and 
Associate General Counsel, SIFMA, dated July 18, 2019; Eric Swanson, 
CEO, XTX Markets LLC (Americas), dated July 31, 2019, available at 
https://www.sec.gov/comments/sr-cboeedga-2019-012/srcboeedga2019012.htm.
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \5\ provides that, within 45 days of 
the publication of the notice of the filing of a proposed rule change, 
or within such longer period up to 90 days as the Commission may 
designate if it finds such longer period to be appropriate and 
publishes its reasons for so finding or as to which the self-regulatory 
organization consents, the Commission shall either approve the proposed 
rule change, disapprove the proposed rule change, or institute 
proceedings to determine whether the proposed rule change should be 
disapproved. The 45th day after publication of the notice for this 
proposed rule change is August 10, 2019.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission is extending the 45-day time period for Commission 
action on the proposed rule change. The Commission finds that it is 
appropriate to designate a longer period within which to take action on 
the proposed rule change so that it has sufficient time to consider the 
proposed rule change. Accordingly, pursuant to Section 19(b)(2) of the 
Act,\6\ the Commission designates September 24, 2019 as the date by 
which the Commission shall either approve, disapprove, or institute 
proceedings to determine whether to

[[Page 39386]]

disapprove, the proposed rule change (File No. SR-CboeEDGA-2019-012).
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(2)(A)(ii)(I).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-17046 Filed 8-8-19; 8:45 am]
 BILLING CODE 8011-01-P

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