Self-Regulatory Organizations; LCH SA; Notice of Filing of Proposed Rule Change Relating to Extension of Weekly Backloading Cycle to Index Swaptions, 47328-47330 [2019-19335]
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47328
Federal Register / Vol. 84, No. 174 / Monday, September 9, 2019 / Notices
removal of a negotiated service
agreement from the market dominant or
the competitive product list, or the
modification of an existing product
currently appearing on the market
dominant or the competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3007.301.1
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
jbell on DSK3GLQ082PROD with NOTICES
II. Docketed Proceeding(s)
1. Docket No(s).: MC2019–189 and
CP2019–212; Filing Title: USPS Request
to Add Priority Mail Contract 547 to
Competitive Product List and Notice of
Filing Materials Under Seal; Filing
Acceptance Date: September 3, 2019;
Filing Authority: 39 U.S.C. 3642, 39 CFR
3020.30 et seq., and 39 CFR 3015.5;
Public Representative: Christopher C.
Mohr; Comments Due: September 11,
2019.
2. Docket No(s).: MC2019–190 and
CP2019–213; Filing Title: USPS Request
to Add Priority Mail Express & Priority
Mail Contract 98 to Competitive Product
List and Notice of Filing Materials
1 See
Docket No. RM2018–3, Order Adopting
Final Rules Relating to Non-Public Information,
June 27, 2018, Attachment A at 19–22 (Order No.
4679).
VerDate Sep<11>2014
20:43 Sep 06, 2019
Jkt 247001
Under Seal; Filing Acceptance Date:
September 3, 2019; Filing Authority: 39
U.S.C. 3642, 39 CFR 3020.30 et seq., and
39 CFR 3015.5; Public Representative:
Christopher C. Mohr; Comments Due:
September 11, 2019.
This Notice will be published in the
Federal Register.
Darcie S. Tokioka,
Acting Secretary.
[FR Doc. 2019–19353 Filed 9–6–19; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL SERVICE
Product Change—Priority Mail Express
and Priority Mail Negotiated Service
Agreement
Postal ServiceTM.
ACTION: Notice.
AGENCY:
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:
September 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 September 3,
2019, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express & Priority Mail
Contract 98 to Competitive Product List.
Documents are available at
www.prc.gov, Docket Nos. MC2019–190,
CP2019–213.
SUMMARY:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2019–19330 Filed 9–6–19; 8:45 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86858; File No. SR–LCH
SA–2019–006]
Self-Regulatory Organizations; LCH
SA; Notice of Filing of Proposed Rule
Change Relating to Extension of
Weekly Backloading Cycle to Index
Swaptions
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Frm 00096
Fmt 4703
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) CDS Clearing Rule Book
(‘‘Rule Book’’) and (ii) CDS Clearing
Procedures (‘‘Procedures’’) (collectively
the ‘‘CDS Clearing Rules’’) to make
conforming, clarifying, and clean-up
changes intended to: (1) Extend the
weekly backloading process to Index
Swaptions; and (2) amend the structure
of the documentation in respect of the
backloading process. Capitalized terms
not defined or modified in this rule
proposal will have the same meaning as
in LCH SA’s existing Rule Book or
Procedures.
The text of the proposed rule change
has been annexed as Exhibit 5.3
The implementation of the updated
Rule Book and Procedures will be
contingent on LCH SA’s receipt of all
necessary regulatory approvals.
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 amend its
CDS Clearing Rules to allow clearing
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 All capitalized terms not defined herein have
the same definition as the Rule Book, Supplement
or Procedures, as applicable.
2 17
September 3, 2019.
PO 00000
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2
notice is hereby given that on August
20, 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.
Sfmt 4703
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Federal Register / Vol. 84, No. 174 / Monday, September 9, 2019 / Notices
process of Index Swaptions through the
CDSClear Weekly Backloading Cycle, in
addition to the CDS that are already in
the scope of this process today.
Further, this proposed rule change
will also amend the CDS Clearing Rules
in order to review the structure of the
rule book documentation in respect of
the Weekly Backloading Cycle and the
Daily Backloading Cycle and make
consistency changes.
(a) Amendments To Extend the Weekly
Backloading Cycle to Index Swaptions
The updated CDS Clearing Rules will
permit Clearing Members to submit
Index Swaptions to LCH SA for clearing
through the Weekly Backloading Cycle.
For the purpose of this extension,
existing defined terms and provisions in
the Rule Book and Sections 4 and 5 of
the Procedures have been amended as
described below.
i. Rule Book
With respect to the Rule Book, LCH
SA proposes to make amendments to
the existing defined term ’’Weekly
Backloading Transaction’’ contained
within Title I, Chapter 1, Section 1.1.1.
by adding a reference to ‘‘Index
Swaption’’.
ii. Procedures
(A) Section 4
Section 4 of the Procedures will be
updated to make the relevant eligibility
requirements applicable to Index
Swaptions to be submitted to LCH SA
for clearing through the Weekly
Backloading Cycle where necessary.
Thus, the reference to an ‘‘Index
Swaption Intraday Transaction’’ in
Section 4.1(c)(i)(V) will be replaced by
a reference to an ‘‘Index Swaption’’. In
addition, the reference to an ‘‘Index
Swaption Intraday Transaction’’ in
Section 4.1(c)(iii)(C) will be replaced by
a reference to an ‘‘Index Swaption that
is an Index Swaption Intraday
Transaction or a Weekly Backloading
Transaction’’.
jbell on DSK3GLQ082PROD with NOTICES
(B) Section 5
LCH SA proposes to update Section 5
of the Procedures by adding a reference
to ‘‘Index Swaptions’’ in Section 5.2(b)
so that Index Swaptions are eligible for
the Weekly Backloading Cycle.
(b) Technical Amendments
The amendments to the Rule Book
and Procedures also contain
typographical corrections and changes
made for consistency purpose.
Specifically, information on the Daily
Backloading Cycle and the Weekly
Backloading Cycle will be moved from
the Rule Book and Section 5 of the
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20:43 Sep 06, 2019
Jkt 247001
Procedures to new Clearing Notices (i.e.
a Clearing Notice named ‘‘Daily
Backloading Cycle’’ and a Clearing
Notice named ‘‘Weekly Backloading
Cycle’’) for consistency purpose as this
is operational information that does not
need to be part of the CDS Clearing
Rules. No amendment will be made to
the content of the provisions moved to
these new Clearing Notices.
Therefore, Section 5.2(b) and (c) of the
Procedures will refer to a Clearing
Notice and the timetable applicable to
each of the Daily Backloading Cycle and
Weekly Backloading Cycle is proposed
to be removed from these paragraphs. In
the Rule Book, defined terms of
‘‘Eligible Weekly Backloading
Transaction’’ and ‘‘Irrevocable Weekly
Backloading Transaction’’ will therefore
refer to a Clearing Notice instead of
Section 5 of the Procedures, as well as
Sections 3.1.1 and 3.1.2 of the Rule
Book.
In addition, the definitions of
‘‘Weekly Backloading Start Day’’ and
‘‘Weekly Backloading Novation Day’’ in
the Rule Book are proposed to be
amended in order to make a general
reference to a day as determined by LCH
SA in accordance with Article 3.1.1.10
of the Rule Book as these days will be
provided for in the new Clearing Notice
named ‘‘Weekly Backloading Cycle’’.
Article 3.1.1.10 will be amended to
remove the publication date of this
Clearing Notice as the provisional
calendar, which specifies the Weekly
Backloading Cycle will not change each
year.
Finally, typographical corrections will
be made to the definition of ‘‘Converting
Clearing Member’’ in the Rule Book and
Section 4.1(c)(vii)(B) of the Procedures.
The reference to Section 3 in Article
3.1.1.1 of the Rule Book is also proposed
to be deleted as it is redundant with the
provisions of the previous sentence of
this Article.
2. Statutory Basis.
As more discussed below, LCH SA
believes that the Proposed Rule Change
is consistent with the requirements of
Section 17A of the Securities Exchange
Act of 1934 4 (the ‘‘Exchange Act’’) and
the regulations thereunder, including
the standards under Exchange Act Rule
17Ad–22.5
Section 17A(b)(3)(F) of the Exchange
Act 6 requires, among other things, that
the rules of a clearing agency be
designed to promote the prompt and
accurate clearance and settlement of
securities transactions and, to the extent
U.S.C. 78q–1.
CFR 240.17Ad–22.
6 15 U.S.C. 78q–1(b)(3)(F).
applicable, derivative agreements,
contracts, and transactions.
By offering Clearing Members the
possibility to submit Index Swaptions to
LCH SA for clearing through the
CDSClear Weekly Backloading Cycle,
the Proposed Rule Change will extend
the backloading to Index Swaptions and
therefore permit cross instruments
netting that can yield more cost effective
margins and would promote the
clearance process of credit derivatives
transactions so that LCH SA believes
that the proposed amendments are
consistent with the requirements of
Section 17A of the Exchange Act.7
These proposed rule changes will also
provide additional security to members
who will choose to perform intraday
clearing as it will enable the capture of
trades that would normally be sent as
part of intraday clearing but that are
sent for clearing beyond the current one
day deadline. This, therefore, will be
consistent and align with the
requirements of Exchange Act Rule
17Ad–22(e)(8) which requires each
covered clearing agency to establish,
implement, maintain and enforce
written policies and procedures
reasonably designed to ‘‘define the point
at which settlement is final to be no
later than the end of the day on which
the payment or obligation is due and,
where necessary or appropriate,
intraday or in real time.’’ 8
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.9 LCH SA does not
believe that the proposed rule change
would impose burdens on competition
that are not necessary or appropriate in
furtherance of the purposes of the Act.
LCH SA is only extending the
CDSClear weekly Backloading cycle to
Index Swaptions.
Specifically, the proposed rule
changes would apply equally to all
Clearing Members and would generally
improve the ability of such market
participants to engage in cleared
transactions and clearing services.
Therefore, LCH SA does not believe
that the proposed rule change would
impose a burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
4 15
7 15
5 17
8 17
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
47329
U.S.C. 78q–1.
CFR 240.17Ad–22(e)(8).
9 15 U.S.C. 78q–1(b)(3)(I).
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09SEN1
47330
Federal Register / Vol. 84, No. 174 / Monday, September 9, 2019 / Notices
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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
LCH SA–2019–006 on the subject line.
jbell on DSK3GLQ082PROD with NOTICES
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–2019–006. 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
VerDate Sep<11>2014
20:43 Sep 06, 2019
Jkt 247001
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 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–2019–006 and
should be submitted on or before
September 30, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–19335 Filed 9–6–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86854; File No. SR–IEX–
2019–08]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify Its
Fee Schedule To Establish Fees for the
Execution of Retail and Retail Liquidity
Provider Orders and To Eliminate Fee
Code N From the Fee Schedule
September 3, 2019.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on August
22, 2019, Investors Exchange LLC
(‘‘IEX’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
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
Pursuant to the provisions of Section
19(b)(1) under the Act,4 and Rule 19b–
4 thereunder,5 IEX is filing with the
Commission a proposed rule change to
modify its Fee Schedule, pursuant to
IEX Rule 15.110(a) and (c), to establish
fees for the execution of Retail and
Retail Liquidity Provider orders and to
eliminate Fee Code N from the Fee
Schedule. Changes to the Fee Schedule
pursuant to this proposal are effective
upon filing,6 and will be implemented
as described herein.
The text of the proposed rule change
is available at the Exchange’s website at
www.iextrading.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization 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 statement may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to modify its
Fee Schedule, pursuant to IEX Rule
15.110(a) and (c), to establish fees for
the execution of Retail and Retail
Liquidity Provider orders and to
eliminate Fee Code N from the Fee
Schedule.
Retail Price Improvement Program Fees
On August 9, 2019, the Commission
approved an IEX rule filing to establish
a Retail Price Improvement Program
(‘‘Retail Program’’).7 IEX now proposes
4 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
6 15 U.S.C. 78s(b)(3)(A)(ii).
7 See Securities Exchange Act Release No. 86619
(August 9, 2019), 84 FR 41769 (August 15, 2019)
(SR–IEX–2019–05) (order approving the IEX Retail
Program).
5 17
E:\FR\FM\09SEN1.SGM
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Agencies
[Federal Register Volume 84, Number 174 (Monday, September 9, 2019)]
[Notices]
[Pages 47328-47330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19335]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86858; File No. SR-LCH SA-2019-006]
Self-Regulatory Organizations; LCH SA; Notice of Filing of
Proposed Rule Change Relating to Extension of Weekly Backloading Cycle
to Index Swaptions
September 3, 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 August 20, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
Banque Centrale de Compensation, which conducts business under the
name LCH SA (``LCH SA''), is proposing to amend its (i) CDS Clearing
Rule Book (``Rule Book'') and (ii) CDS Clearing Procedures
(``Procedures'') (collectively the ``CDS Clearing Rules'') to make
conforming, clarifying, and clean-up changes intended to: (1) Extend
the weekly backloading process to Index Swaptions; and (2) amend the
structure of the documentation in respect of the backloading process.
Capitalized terms not defined or modified in this rule proposal will
have the same meaning as in LCH SA's existing Rule Book or Procedures.
The text of the proposed rule change has been annexed as Exhibit
5.\3\
---------------------------------------------------------------------------
\3\ All capitalized terms not defined herein have the same
definition as the Rule Book, Supplement or Procedures, as
applicable.
---------------------------------------------------------------------------
The implementation of the updated Rule Book and Procedures will be
contingent on LCH SA's receipt of all necessary regulatory approvals.
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 amend its CDS Clearing Rules to allow
clearing
[[Page 47329]]
process of Index Swaptions through the CDSClear Weekly Backloading
Cycle, in addition to the CDS that are already in the scope of this
process today.
Further, this proposed rule change will also amend the CDS Clearing
Rules in order to review the structure of the rule book documentation
in respect of the Weekly Backloading Cycle and the Daily Backloading
Cycle and make consistency changes.
(a) Amendments To Extend the Weekly Backloading Cycle to Index
Swaptions
The updated CDS Clearing Rules will permit Clearing Members to
submit Index Swaptions to LCH SA for clearing through the Weekly
Backloading Cycle. For the purpose of this extension, existing defined
terms and provisions in the Rule Book and Sections 4 and 5 of the
Procedures have been amended as described below.
i. Rule Book
With respect to the Rule Book, LCH SA proposes to make amendments
to the existing defined term ''Weekly Backloading Transaction''
contained within Title I, Chapter 1, Section 1.1.1. by adding a
reference to ``Index Swaption''.
ii. Procedures
(A) Section 4
Section 4 of the Procedures will be updated to make the relevant
eligibility requirements applicable to Index Swaptions to be submitted
to LCH SA for clearing through the Weekly Backloading Cycle where
necessary.
Thus, the reference to an ``Index Swaption Intraday Transaction''
in Section 4.1(c)(i)(V) will be replaced by a reference to an ``Index
Swaption''. In addition, the reference to an ``Index Swaption Intraday
Transaction'' in Section 4.1(c)(iii)(C) will be replaced by a reference
to an ``Index Swaption that is an Index Swaption Intraday Transaction
or a Weekly Backloading Transaction''.
(B) Section 5
LCH SA proposes to update Section 5 of the Procedures by adding a
reference to ``Index Swaptions'' in Section 5.2(b) so that Index
Swaptions are eligible for the Weekly Backloading Cycle.
(b) Technical Amendments
The amendments to the Rule Book and Procedures also contain
typographical corrections and changes made for consistency purpose.
Specifically, information on the Daily Backloading Cycle and the Weekly
Backloading Cycle will be moved from the Rule Book and Section 5 of the
Procedures to new Clearing Notices (i.e. a Clearing Notice named
``Daily Backloading Cycle'' and a Clearing Notice named ``Weekly
Backloading Cycle'') for consistency purpose as this is operational
information that does not need to be part of the CDS Clearing Rules. No
amendment will be made to the content of the provisions moved to these
new Clearing Notices.
Therefore, Section 5.2(b) and (c) of the Procedures will refer to a
Clearing Notice and the timetable applicable to each of the Daily
Backloading Cycle and Weekly Backloading Cycle is proposed to be
removed from these paragraphs. In the Rule Book, defined terms of
``Eligible Weekly Backloading Transaction'' and ``Irrevocable Weekly
Backloading Transaction'' will therefore refer to a Clearing Notice
instead of Section 5 of the Procedures, as well as Sections 3.1.1 and
3.1.2 of the Rule Book.
In addition, the definitions of ``Weekly Backloading Start Day''
and ``Weekly Backloading Novation Day'' in the Rule Book are proposed
to be amended in order to make a general reference to a day as
determined by LCH SA in accordance with Article 3.1.1.10 of the Rule
Book as these days will be provided for in the new Clearing Notice
named ``Weekly Backloading Cycle''. Article 3.1.1.10 will be amended to
remove the publication date of this Clearing Notice as the provisional
calendar, which specifies the Weekly Backloading Cycle will not change
each year.
Finally, typographical corrections will be made to the definition
of ``Converting Clearing Member'' in the Rule Book and Section
4.1(c)(vii)(B) of the Procedures. The reference to Section 3 in Article
3.1.1.1 of the Rule Book is also proposed to be deleted as it is
redundant with the provisions of the previous sentence of this Article.
2. Statutory Basis.
As more discussed below, LCH SA believes that the Proposed Rule
Change is consistent with the requirements of Section 17A of the
Securities Exchange Act of 1934 \4\ (the ``Exchange Act'') and the
regulations thereunder, including the standards under Exchange Act Rule
17Ad-22.\5\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78q-1.
\5\ 17 CFR 240.17Ad-22.
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Section 17A(b)(3)(F) of the Exchange Act \6\ requires, among other
things, that the rules of a clearing agency be designed to promote the
prompt and accurate clearance and settlement of securities transactions
and, to the extent applicable, derivative agreements, contracts, and
transactions.
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\6\ 15 U.S.C. 78q-1(b)(3)(F).
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By offering Clearing Members the possibility to submit Index
Swaptions to LCH SA for clearing through the CDSClear Weekly
Backloading Cycle, the Proposed Rule Change will extend the backloading
to Index Swaptions and therefore permit cross instruments netting that
can yield more cost effective margins and would promote the clearance
process of credit derivatives transactions so that LCH SA believes that
the proposed amendments are consistent with the requirements of Section
17A of the Exchange Act.\7\
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\7\ 15 U.S.C. 78q-1.
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These proposed rule changes will also provide additional security
to members who will choose to perform intraday clearing as it will
enable the capture of trades that would normally be sent as part of
intraday clearing but that are sent for clearing beyond the current one
day deadline. This, therefore, will be consistent and align with the
requirements of Exchange Act Rule 17Ad-22(e)(8) which requires each
covered clearing agency to establish, implement, maintain and enforce
written policies and procedures reasonably designed to ``define the
point at which settlement is final to be no later than the end of the
day on which the payment or obligation is due and, where necessary or
appropriate, intraday or in real time.'' \8\
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\8\ 17 CFR 240.17Ad-22(e)(8).
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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.\9\ LCH SA does
not believe that the proposed rule change would impose burdens on
competition that are not necessary or appropriate in furtherance of the
purposes of the Act.
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\9\ 15 U.S.C. 78q-1(b)(3)(I).
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LCH SA is only extending the CDSClear weekly Backloading cycle to
Index Swaptions.
Specifically, the proposed rule changes would apply equally to all
Clearing Members and would generally improve the ability of such market
participants to engage in cleared transactions and clearing services.
Therefore, LCH SA does not believe that the proposed rule change
would impose a burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
[[Page 47330]]
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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-LCH SA-2019-006 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-2019-006. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of 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-2019-006 and
should be submitted on or before September 30, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Jill M. Peterson,
Assistant Secretary.
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\10\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2019-19335 Filed 9-6-19; 8:45 am]
BILLING CODE 8011-01-P